factors affecting the retention of generation y...

FACTORS AFFECTING THE RETENTION OF GENERATION Y WORKERS IN FOOD INDUSTRY

KOH YAN HORNG

MASTER OF BUSINESS ADMINISTRATION

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY AND MANAGEMENT

APRIL 2018

KOH YAN HORNG EMPLOYEE RETENTION MBA APRIL 2018

Factors Affecting the Retention of Generation Y Workers in

Food Industry

Koh Yan Horng

A research project submitted in partial fulfilment of the

requirement for the degree of

Master of Business Administration

Universiti Tunku Abdul Rahman

Faculty of Accountancy and Management

April 2018

Factors Affecting the Retention of Generation Y Workers in

Food Industry

By

Koh Yan Horng

This research project is supervised by:

Dr. Komathi a/p Munusamy

Assistant Professor

Department of International Business

Faculty of Accountancy and Management

iii

Copyright @ 2018

ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a

retrieval system, or transmitted in any form or by any means, graphic, electronic,

mechanical, photocopying, recording, scanning, or otherwise, without the prior

consent of the authors.

iv

DECLARATION

I hereby declare that:

(1) This Research Project is the end result of my own work and that due

acknowledgement has been given in the references to all sources of information be

they printed, electronic, or personal.

(2) No portion of this research project has been submitted in support of any application

for any other degree or qualification of this or any other university, or other

institutes of learning.

(3) The word count of this research report is 18,685 .

Name of Student : Koh Yan Horng

Student ID : 16UKM06202

Signature :

Date : 20 APRIL 2018

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ACKNOWLEDGEMENTS

I would like to take this opportunity to express my deepest appreciation to all the

people who assisted and supported me in making the completion of this study

possible.

First and foremost, I would like to express my sincere gratitude to my supervisor, Dr.

Komathi a/p Munusamy, for the continuous assistance and support in this research

project. She devoted her precious time and efforts in providing me with valuable and

insightful comments and advices from the very beginning to the end. Her patience

and guidance are absolute essential for me to complete this research project.

Secondly, I would also like to thank my family and friends for their overwhelming

love, support, and encouragement throughout this course. They were always by my

side through the good and bad times, as well as encouraging me with their best wishes.

They are more important than I ever thought, as I would not have been able to

complete this research project without their existence.

Thirdly, I am truly appreciated to all the respondents who are willing to spare their

precious time and effort in understanding and completing the questionnaires. This

research project would not have been completed without the cooperation, honest

contributions, and feedback with valuable information from the respondents. A

special thanks to Universiti Tunku Abdul Rahman (UTAR) for providing me the

necessary facilities in accessing to various resources that assisted me in completing

this dissertation.

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Last but not least, I would like to dedicate my appreciation to all the contributors who

are not mentioned above. This research project would not have been able to complete

without the guidance, assistance, and support from each and every one of you.

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DEDICATION

This dissertation is specially dedicated to:

Dr. Komathi a/p Munusamy

and

My family, friends, and loved one

Thanks for the continuous guidance, assistance, and support throughout the journey

of this research project

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TABLE OF CONTENTS

Page

Copyright Page……………………………………………………………………….iii

Declaration ............................................................................................................... iv

Acknowledgements ................................................................................................... v

Dedication ............................................................................................................... vii

Table of Contents ...................................................................................................viii

List of Tables..........................................................................................................xiii

List of Figures ........................................................................................................ xiv

List of Abbrevations ................................................................................................ xv

List of Appendices .................................................................................................. xvi

Abstract ................................................................................................................. xvii

CHAPTER 1 INTRODUCTION................................................................................ 1

1.0 Introduction .................................................................................................... 1

1.1 Research Background ..................................................................................... 1

1.1.1 Employee Retention ................................................................................. 1

1.1.2 Food Industry in Malaysia ........................................................................ 3

1.2 Problem Statement .......................................................................................... 5

1.3 Research Questions ......................................................................................... 7

1.4 Research Objectives ........................................................................................ 8

1.5 Summary of Hypotheses ................................................................................. 8

1.6 Significance of the Study ................................................................................ 8

1.7 Conclusion .................................................................................................... 10

ix

CHAPTER 2 LITERATURE REVIEW ................................................................... 11

2.0 Introduction .................................................................................................. 11

2.1 Review of the Literature ................................................................................ 11

2.1.1 Generation Y ......................................................................................... 11

2.1.2 Employee Retention ............................................................................... 13

2.1.3 Compensation ........................................................................................ 14

2.1.4 Leadership ............................................................................................. 15

2.1.5 Training and Development ..................................................................... 16

2.1.6 Working Environment ............................................................................ 17

2.1.7 Work-Life Balance................................................................................. 18

2.1.8 Job Satisfaction ...................................................................................... 19

2.2 Review of Relevant Theoretical Models ........................................................ 20

2.2.1 Model 1: Compensation and Employee Retention .................................. 20

2.2.2 Model 2: Leadership and Employee Retention ....................................... 21

2.2.3 Model 3: Training and Development and Employee Retention ............... 22

2.2.4 Model 4: Working Environment, Rewards and Work-life Policies and

Employee Retention ............................................................................................. 22

2.2.5 Model 5: Work-Life Balance, Working Environment and Employee

Retention ............................................................................................................. 23

2.2.6 Model 6: Job Satisfaction and Employee Retention ................................ 24

2.3 Proposed Research Framework ..................................................................... 25

2.4 Hypotheses Development .............................................................................. 26

2.4.1 The Relationship between Compensation and Employee Retention ........ 26

2.4.2 The Relationship between Leadership and Employee Retention ............. 27

2.4.3 The Relationship between Training and Development and Employee

Retention ............................................................................................................. 28

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2.4.4 The Relationship between Working Environment and Employee Retention

…………………………………………………………………………...29

2.4.5 The Relationship between Work-Life Balance and Job Satisfaction ....... 30

2.4.6 The Relationship between Job Satisfaction and Employee Retention ...... 31

2.5 Conclusion .................................................................................................... 32

CHAPTER 3 RESEARCH METHODOLOGY ........................................................ 33

3.0 Introduction .................................................................................................. 33

3.1 Research Design ........................................................................................... 33

3.1.1 Quantitative Method .............................................................................. 34

3.1.2 Causal Research ..................................................................................... 34

3.2 Data Collection Methods ............................................................................... 35

3.2.1 Primary Data .......................................................................................... 35

3.3 Sampling Design ........................................................................................... 36

3.3.1 Target Population ................................................................................... 36

3.3.2 Sampling Elements ................................................................................ 37

3.3.3 Sampling Size ........................................................................................ 37

3.3.4 Sampling Technique .............................................................................. 38

3.3.5 Sampling Frame and Sampling Location ................................................ 39

3.4 Research Instrument ...................................................................................... 40

3.4.1 Origin of Constructs ............................................................................... 40

3.4.2 Questionnaire Design ............................................................................. 42

3.4.3 Pilot Study ............................................................................................. 43

3.5 Construct Measurement ................................................................................ 44

3.5.1 Nominal Scale........................................................................................ 44

3.5.2 Ordinal Scale ......................................................................................... 44

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3.5.3 Likert Scale (Interval Scale) ................................................................... 44

3.6 Data Processing ............................................................................................ 45

3.7 Data Analysis Method ................................................................................... 45

3.7.1 Descriptive Analysis .............................................................................. 46

3.7.2 Reliability Analysis ................................................................................ 46

3.7.3 Pearson Correlation Analysis ................................................................. 47

3.7.4 Multiple Regression ............................................................................... 48

3.8 Conclusion .................................................................................................... 49

CHAPTER 4 RESEARCH RESULTS ..................................................................... 50

4.0 Introduction .................................................................................................. 50

4.1 Response Rate............................................................................................... 50

4.2 Descriptive Analysis ..................................................................................... 51

4.2.1 Gender ................................................................................................... 51

4.2.2 Born Year .............................................................................................. 53

4.2.3 Marital Status ......................................................................................... 54

4.2.4 Education Level ..................................................................................... 56

4.2.5 Job Position ........................................................................................... 57

4.2.6 Work Experience ................................................................................... 59

4.3 Reliability Analysis ....................................................................................... 60

4.4 Inferential Analysis ....................................................................................... 61

4.4.1 Pearson’s Correlation Coefficient Analysis ............................................ 61

4.4.2 Multiple Regression Analysis ................................................................. 64

4.5 Conclusion .................................................................................................... 69

CHAPTER 5 DISCUSSION AND CONCLUSION ................................................. 70

5.0 Introduction .................................................................................................. 70

xii

5.1 Summary of Statistical Analysis .................................................................... 70

5.1.1 Descriptive Analysis .............................................................................. 70

5.1.2 Reliability Analysis ................................................................................ 71

5.1.3 Inferential Analysis ................................................................................ 71

5.1.3.1 Pearson’s Correlation Analysis .............................................................. 71

5.1.3.2 Multiple Regressions Analysis ............................................................... 72

5.2 Discussion on Major Findings ....................................................................... 73

5.2.1 Relationship between Compensation and Employee Retention ............... 74

5.2.2 Relationship between Leadership and Employee Retention .................... 74

5.2.3 Relationship between Training and Development and Employee Retention

…………………………………………………………………………...75

5.2.4 Relationship between Working Environment and Employee Retention .. 76

5.2.5 Relationship between Work-Life Balance and Employee Retention ....... 77

5.2.6 Relationship between Job Satisfaction and Employee Retention ............. 77

5.3 Implications on the Study .............................................................................. 78

5.4 Limitation of the Study ................................................................................. 79

5.5 Recommendation .......................................................................................... 80

5.6 Conclusion .................................................................................................... 82

References ............................................................................................................... 83

Appendices ............................................................................................................ 100

xiii

LIST OF TABLES

Page

Table 3.1: Origin of Constructs of the Questionnaires 41

Table 3.2: Reliability Statistics (Pilot Test) 43

Table 3.3: Cronbach’s alpha Measurement 47

Table 3.4: Measurement of Pearson Correlation 48

Table 4.1: Response Rate of Questionnaires 50

Table 4.2: Frequency Table of Respondents’ Gender 51

Table 4.3: Frequency Table of Respondents’ Born Year 53

Table 4.4: Frequency Table of Respondents’ Marital Status 54

Table 4.5: Frequency Table of Respondents’ Education Level 56

Table 4.6: Frequency Table of Respondents’ Job Position 57

Table 4.7: Frequency Table of Work Experience 59

Table 4.8: Reliability Analysis Results for Dependent Variable and Independent

Variables 60

Table 4.9: Pearson’s Correlation Analysis Results 62

Table 4.10: Model Summary of Multiple Regression Analysis 64

Table 4.11: ANOVA Test of Multiple Regression Analysis 65

Table 4.12: Coefficient Table of Multiple Regression Analysis 66

Table 5.1: Results of the Hypotheses Testing 73

xiv

LIST OF FIGURES

Page

Figure 2.1: Model of Compensation with Employee Retention 20

Figure 2.2: Model of Leadership and Employee Retention 21

Figure 2.3: Model of Training and Development and Employee Retention 22

Figure 2.4: Model of Working Environment, Rewards and Work-life Policies

Employee Retention 22

Figure 2.5: Model of Work-Life Balance, Working Environment and Employee

Retention 23

Figure 2.6: Model of Job Satisfaction and Employee Retention 24

Figure 2.7: Proposed Research Framework 25

Figure 4.1: Bar Chart of Respondents’ Gender 52

Figure 4.2: Bar Chart of Respondents’ Born Year 53

Figure 4.3: Bar Chart of Respondents’ Marital Status 55

Figure 4.4: Bar Chart of Respondents’ Education Level 56

Figure 4.5: Bar Chart of Respondents’ Job Position 58

Figure 4.6: Bar Chart of Respondents’ Work Experience 59

Figure 4.7: Results of the Theoretical Framework 69

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LIST OF ABBREVATIONS

CP Compensation

ER Employee retention

JS Job satisfaction

L Leadership

SPSS Statistical Package for the Social Sciences

TD Training and development

WE Working environment

WLB Work-life balance

xvi

LIST OF APPENDICES

Page

Appendix A: Survey Questionnaire Form 100

Appendix B: Frequency Results on Respondents’ Demographical

Information 106

Appendix C: Cronbach’s Alpha Using Reliability Test 108

Appendix D: Pearson Correlation Coefficient Test 115

Appendix E: Multiple Regression Test 116

xvii

ABSTRACT

Human capitals and resources act as a vital asset to the organisations. Retain the

talented or skilled employee is an important issue to the organisation to keep the

organisation stay competitive in the industry. The leaving of the skilled employee

from the organisation will give the negative impact on the organisational performance.

Generation Y becomes the latest workforce in many organisations. Comparing to

other generational employees, Generation Y contributed higher turnover rate. It is

important to study the factors which will cause of retention of Generation Y workers.

Food industry is a major contributor to Malaysia economy. It was once categorised as

top priority in the Industrial Master Plan of year 1986 to 1995.

The objective of this study is to examine the relationship between the factors which

are compensation, leadership, training and development, working environment, work-

life balance and job satisfaction with the employee retention. The target respondents

are the Generation Y workers work in the food industry within Iskandar Malaysia. In

total 314 samples were collected by the researcher using the questionnaire. The

samples were analysed by the statistical software SPSS. The demographic profile of

respondents was analysed. The reliability test, Pearson Correlation Analysis and

Multiple Regression Analysis were carried out in this study.

The findings of this study showed that the six factors being studied have a positive

direct effect on the employee retention among the Generation Y workers in food

industry. Job satisfaction, leadership and compensation are the top three factors that

have direct effect on the employee retention in this study.

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CHAPTER 1

INTRODUCTION

1.0 Introduction

The objective of this research study is to examine the six factors’ relationship, which

are compensations, leadership, training and development, working environment,

work-life balance and job satisfaction with the dependent variable which is employee

retention in food industry among the Generation Y. This research will provide more

understanding about how compensations, leadership, training and development,

working environment, work-life balance and job satisfaction affect the employee

retention among Generation Y. In this chapter, it will present the research background,

problem statement, research question, research objectives, summary of hypotheses,

and also the significance of study.

1.1 Research Background

1.1.1 Employee Retention

Human capitals and resources are the most important and dynamic assets of the

organisations. Although many organisations nowadays are technology driven, capital

of human are still needed to operate the organisations’ technology. Hence the human

capitals and resources are acting as the life-blood for the organisation (Das & Baruah,

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2013). According to Johnson (2000), employee retention defines as the capability to

keep the capable and treasured employees that the organisation wanted for a longer

period than the competitors. Each organisation wants to be high productivity, high

employee retention and also profitability (Arokiasamy, 2013). Retains the valuable

and talented employees is crucial to those organisations in order to remain the

competitive. If the organisations are failed to retain the high performing and talented

employees, it will negatively impact on the competitive advantage of the

organisations (Juhdi, Pa’wan, & Hansaram, 2013; Rappaport, Bancroft, & Okum,

2003).

The retention of crucial employees is important for the organisations to remain long-

term health and success. Besides, retention of key employees will extend to great

customer satisfactions, good sales performance of the organisations, harmony

between reporting staff and colleagues, and also effective succession planning (Das &

Baruah, 2013). Hence, to hold the high performing employees for a long-term period

is the priority for many organisations and it becomes the main differentiator of the

human resource management (Mohammed, 2015).

High turnover rate has caused shortage of experienced or high performing employees

for the organisations, and it becomes the serious issue and challenge that faced by the

managers and organisations (Lalitha, 2012). Failed to retain the talented employees is

not only caused the shortage of manpower, it will also lead to the loss of knowledge

and experience that will impact the organisational productivity and services

negatively (Ng’ethe, Iravo, & Namusonge, 2012).

The different researches on the generations in the workplace shows that the three

major generations that are employed by the organisations are Baby Boomers

Generation with the year 1946 to 1964, Generation X with the year 1965 to 1979, and

also Generation Y that born between 1980 to 2000 (Gibson, Greenwood, & Edward Jr,

2009; Hendricks & Cope, 2013; Kapoor & Solomon, 2011; Keepnews, Brewer,

Kovner, & Shin, 2010). The Baby Boomers are starting to retire from the workplaces,

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and replaced by Generation Y (Sujansky & Ferri-Reed, 2009). An estimation that

made by U.S. Census Bureau has predicted that the Generation Y and the next

generation, Generation Z will constitute more than 50% of the global population as

well as 75% will be involved as workforce by year 2025 (Bovis, Cardoso, Wright, &

Gott, n.d.).

According to Glass (2007), Generation Y is the fastest growing workforce in the

workplace. As cited in the study by Queiri and Dwaikat (2016), a research in 2012 by

PricehousewaterCoopers (PwC) Malaysia has found that the Generation Y employees

comprise more than half of the Malaysian workforce. The Generation Y employees

are technological savvy, energetic and young, and able to help the organisations to

attach with the young consumers. However, Generation Y employees are possessing

different values with the previous generations. Low retention rate among Generation

Y has caused the organisations need to cost more for recruiting and training the new

employees to replace the leaving employees (Sujansky & Ferri-Reed, 2009).

According to 2013 General Industry Total Rewards Survey by Towers Watson, the

Malaysian employee turnover rate in 2013 has increased 0.9% compared to 2012,

which is 13.2% from 12.3%. Manufacturing industry had the highest turnover which

is 24.0%, followed by business process outsourcing with 19.0%, conglomerates with

14.0%, and financial services with 13.3% (The Sun Daily, 2013). The findings of the

2015 Employee Intention Report in Malaysia by Micheal Page Malaysia has found

that 44.0% of the employees worked as professionals plan to leave their current jobs

in next 12 months, and only 40.0% of employees stated that only see themselves with

the same jobs in next one to three years (Michael Page, 2015).

1.1.2 Food Industry in Malaysia

In Malaysia, food industry acts as a major contributor to the national economy of

Malaysia. The manufacturing food industry is important to Malaysia due to it is not

only provides the job opportunities to the societies, and also acts as market outlets

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and value adding to the products of primary agriculture. Manufacturing food industry

was once categorised as the top priority for the industrial development of Malaysia

during the Industrial Master Plan (IMP) of year 1986 to 1995 (Ahmed, 2012).

There are numerous multi-national corporates (MNC) and small and medium-sized

enterprises (SME) are having their production facilities in Malaysia, and most of

them are focusing on the domestic demand as well as the export. Hence the

Government of Malaysia is recognised the food industry as one of the vital industries

which acts as the contributor to the overall national economy and also acts as the

potential contributor to the export (Wahab, 2016).

The growth of food production in Malaysia is in an increasing trend. Comparison

between the first seven months (January to July) of year 2014 and year 2013, the total

sales of 2014 had rose 2.5% compared to 2013, which increased to RM 20.6 billion

from 20.1 billion. Food exports of Malaysia had increased to RM 9.3 billion from RM

8.1 billion by 15.7%. The food products’ output had increased 8.6%, caused by the

production of refined palm oil which contributed 18.2%, and followed by rice which

is 17.6%, while the biscuits and cookies contributed 8.7%. Besides, the production of

beverage output also achieved the growth in 2014 which is 19.3% compared to the

dropped in 2013 which is -6.5% (Hooi, 2016).

Based on the Eleventh Malaysia Plan (2016 to 2020), the manufacturing industry is

expected to contribute the growth during the period of plan with 5.1% per annum. It

is because of the industry is adopting more automation and upgrading skills to

produce complex and diverse products as well as enhancing the productivity. In

addition, the food manufacturing is considered as one of the key industries to enhance

the growth and contribute to the overall performance of the manufacturing industry

(Chin, 2015).

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1.2 Problem Statement

Retention of skilled and talented employees becomes a crucial issue to the

organisations and managers in the worldwide due to the rising of the employee

turnover rate. The business environment is becoming more competitive nowadays, the

retaining of talented employees becomes the important differentiating factors for

many organisations (Samuel & Chipunza, 2009). Employee retention allows the

organisations to remain the competitiveness in order to increase the global landscape

(Idris, 2014). A good strategy has to be developed by the manager to retain the skilled

and talented employees. It could ensure the organisations able to gain the benefits

from the investment that has made to the employees (Ng’ethe, Namusonge, & Iravo,

2012).

Understand the factors that affecting the retention of valuable employees is important

to the managers as well as the organisations. Most of the organisations are worrying

about the ability to retain their important employees due to the good employees are in

demand and hard to find a replacement (P. Brown, Fraser, Wong, Muise, &

Cummings, 2013). When the skilled and talented employees are leaving from the

organisations, it might impact negatively on the productivity and service delivery

(Chiboiwa, Samuel, & Chipunza, 2010). In addition, skilled employees commonly

are less likely to show loyalty to one organisation, they prefer to paradigm of new

employment (Kumar & Santhosh, 2014).

Turnover rate is high will cause the organisations need to spend more time for

training new employees as well as loss of experienced employees. High cost of the

employees that caused by the turnover has huge affected the organisational

profitability (Appiah, Kontar, & Asamoah, 2013). According to the Shamsuddin

Bardan, the Executive Director of Malaysia Employer Federation, the replacement

cost for an employee is huge, which will cost around RM 25,000 to RM 30,000 to

replace the leaving employee (Lee, 2012). The leaving of employees from the

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organisations will also impact the remaining employees due to the workloads will

distribute to them thus increasing their burdens (Neog & Barua, 2015).

The Generation Y employees act as the latest workforce in many organisations.

However, a lot of the information regarding to Generation Y employees such as

characteristics, preferences, factors influencing their attitudes and behavioural

intentions still remain unclear (Queiri, Yusoff, & Dwaikat, 2015). Comparing to other

generational employees, the employees from Generation Y in Asian Pacific Region

have the shortest service period to the organisations which only eighteen months

while other generations are four years in average (Sheahan, 2008). In many industries,

the workforce from Generation Y contributed a high turnover rate significantly

(Sujansky & Ferri-Reed, 2009; Yusoff, Queiri, Zakaria, & Hisham, 2013). In addition,

Generation Y employees have less retention intention compared to other generation

(Solnet, Kralj, & Kandampully, 2012).

High tendency to jobs switching among Generation Y become a global consensus that

they are difficult to retain in the organisations (Yusoff et al., 2013). The increasing of

the Generation Y employees’ turnover rate is not only caused the issue in

organisational effectiveness, and also incurred high financial and non-financial cost

as well as becoming a threat to the country’s economic growth by different ways

(Queiri et al., 2015). In addition, the increasing of the job leaving among Generation

Y in Malaysia also caused shortage of talents (Downe, Loke, Ho, & Taiwo, 2012).

The shortage of talented employees has caused many job vacancies are remained

unfilled (Manpower, 2012). Hence, to study the factors influencing Generation Y

retention in workplace is important. The preference of work value for Generation Y is

different with previous generations. However, most of the supervisors or managers of

Generation Y are come from the previous generations such as Baby Boomers and

Generation X (Queiri & Dwaikat, 2016).

The study by Queiri and Dwaikat (2016) regards to the intention to quit of Generation

Y employees only focused on the factors such as satisfaction with pay, stressors and

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organisational strategies. According to different researchers, the retention practices

include financial rewards, training and development, work environment and work-life

balance (Allen, Shore, & Griffeth, 2003; Ghosh & Sahney, 2011; Pfeffer, 1994). A

review study by Das & Baruah (2013) found that the factors will affect the employee

retention include compensation, leadership, training and development, job satisfaction,

working environment and work-life balance.

Although many researchers were studied the Malaysian employee retention or

turnover intention in recent years, most of the them are focused on health-care sector

and hospitality industry (AlBattat & Som, 2013; AlBattat, Som, & Helalat, 2013;

Aziz, Hasbollah, Yaziz, & Ibrahim, 2017; Omar, Majid, Halim, & Johari, 2013;

Rahim & Mwanri, 2014; Sangaran & Jeetesh, 2015). The studies regarding to the

employee retention among Generation Y are still limited. In addition, the studies of

the employee retention in food industry are also limited. Hence, gaps are shown for

the researcher to carry out this study to examine the causes that affecting the

employee retention among Generation Y in food industry. This study will focus on

the factors include compensation, leadership, training and development and working

environment as well as the work-life balance and job satisfaction toward the

employee retention in food industry of Generation Y workers.

1.3 Research Questions

The research questions below are developed and designed to address the researching

issue:

1. Is there a relationship between compensation and employee retention?

2. Is there a relationship between leadership and employee retention?

3. Is there a relationship between training and development and employee

retention?

4. Is there a relationship between work environment and employee retention?

5. Is there a relationship between work-life balance and employee retention?

6. Is there a relationship between job satisfaction and employee retention?

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1.4 Research Objectives

The objective of the study is to examine the impact of the factors on retention of

employee of Generation Y workers. The objectives for the study listed as follows:

1. To examine the relationship between compensations and employee retention.

2. To examine the relationship between leadership and employee retention.

3. To examine the relationship between training and development and employee

retention.

4. To examine the relationship between working environment and employee

retention.

5. To examine the relationship between work-life balance and employee

retention.

6. To examine the relationship between job satisfaction and employee retention.

1.5 Summary of Hypotheses

H1: Compensation has a positive direct effect on employee retention.

H2: Leadership has a positive direct effect on employee retention.

H3: Training and development has a positive direct effect on employee retention.

H4: Working environment has a positive direct effect on employee retention.

H5: Work-life balance has a positive direct effect on employee retention.

H6: Job satisfaction has a positive direct effect on employee retention.

1.6 Significance of the Study

The objective of the study is to examine those six factors that will influence on

retention of workers among workforce of Generation Y in food industry. This study

will enhance the awareness and understanding of the managers as well as

organisations. In this study, the researcher will evaluate how the factors affect the

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employee retention. This study contributes the guidelines to the organisations to plan

the proper strategies in order to keep the skilled and talented employees.

Understanding those factors affect the employee retention allows the managers and

the organisations make the improvement to retain the important employees and

reduce the turnover rate. Failed to retain the skilled and talented employees is not

only incur the high cost and waste of resources to find and train the replacement,

leaving of the employees also will affect the organisational performance by loss of

experience and knowledge. In addition, the finding of the study also acts as guidance

for the organisations in order to attract the potential talented employees.

This study will provide the support and reference to the academic perspective to

further study of the relationship between the six factors (compensation, leadership,

training and development, work environment, work-life balance and job satisfaction)

and retention of workers for the new generational workforce in food manufacturing

industry. This study also contributes in the extra knowledge and theory and practice

insight for the organisations how the factors will influence the retention of the crucial

staffs in the organisations. Besides, the findings of the study also have important

contribution to the academic researchers to understand the factors affect the retention

of new generational employee and help to open up the gap for other researches.

In this study, the researcher will focus on the six factors which will affect the

retention of the Generation Y employees in food manufacturing industry. The study

will provide the information that allows the managers and organisations to understand

the priority of the factors that need to be invested in order to retain the important

employee and reduce the turnover rate in food industry.

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1.7 Conclusion

This chapter offers an outline study on retention of Generation Y workers in food

industry, and consists of research background, problem statements, research questions

and objectives, study hypotheses and significant of study. In coming chapter will

discuss the literature assess on the variables to understand the factors that affect the

employee retention. Besides, proposed conceptual framework will be developed and

explain the relationship of the dependent variable with independent variables, and

also has a discussion on the hypotheses that developed for this study.

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CHAPTER 2

LITERATURE REVIEW

2.0 Introduction

This chapter consists of description of the vital concepts of Generation Y, retention of

employees and the dimension of the factors which are compensation, leadership,

training and development, work environment, work-life balance and job satisfaction.

This chapter also explains the variables that affect the employee retention among

Generation Y in food manufacturing industry and defined the dependent and

independent variables. Moreover, the proposed theoretical framework will be

developed. The formulated hypotheses based on the relationship between the

variables are also explained.

2.1 Review of the Literature

2.1.1 Generation Y

The definitions of the boundaries of Generation Y by different studies are varies.

According to Martin (2005), the Generation Y-ers are those born between 1978 to

1988 while Crampton and Hodge (2006) classified the Generation Y-ers are born

between 1978 to 2002. However, some studies were stated that Generation Y-ers are

born from 1980 onwards. Kersten (2002) stated the range for Generation Y is 1980 to

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2002, and Gurău (2012) claimed the Generation Y belongs to 1980 to 1999. In this

study, the Generation Y will be categorised as those born between 1980 to 2000, and

this definition were used in many previous studies that related to Generation Y

(Eisner, 2005; Foley, Myrick, & Yonge, 2012; Hansen & Leuty, 2012; Stanley, 2010).

Generation Y known as Millennial, and also known as the first high-tech generation

(Norum, 2003). Internet and technology act as a part of the growth process of

Generation Y (Cennamo & Gardner, 2008). They are technology savvy, and the first

generation is using the mobile phone, email and instant messaging service since

childhood (Tyler, 2007, 2008). Hence Generation Y-ers are more adaptable with the

technology comparing to the previous generations (Cennamo & Gardner, 2008; Shaw

& Fairhurst, 2008).

Martin (2005) described the members of Generation Y are commonly received well

education, confident, integrity, passionate, and also socially conscious. Besides of

confident and well educated. Brown, Thomas, and Bosselman (2015) described that

Generation Y-ers are also self-sufficient, team builders, tolerant, and possess the

conscious of politics. Generation Y known as possessing the ability to perform multi-

tasks and also able to take the roles as team players that globally aware (Hutchinson,

Brown, & Longworth, 2012).

Many of the Generation Y employees are possessing work experience when they

were students before graduated and being employed as full-time employees. Hence,

Generation Y employees have their own expectation toward the jobs, such as job

characteristics, choosing of employers, and achievement for the future (Wong, Wan,

& Gao, 2017). Generation Y employees focus on the individualism in the job’s

aspects. However, they are having a realistic expectation about the first employment

and salary. In addition, they pursue for fast development in new skills and knowledge

(Ng, Schweitzer, & Lyons, 2010). Generation Y employees prefer and enjoy

challenging works due to they able to enhance own abilities with the challenges, and

also increase their work enthusiasm (E. A. Brown et al., 2015; Daud, 2016). However,

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the employers need to guide the Generation Y employees with a clear direction due to

they require immediate feedback towards their job performance (Daud, 2016).

2.1.2 Employee Retention

Johnson (2000) defined employee retention as the capability of an organisation to

keeping and retaining the important and talented employees longer than the

competitors from resigning their work. Mita, Aarti and Ravneeta (2014) defined it as

a method used by organisations to hold the important workforce in order to achieve

the requirements of the operation. The retention of the employees is a voluntary

action by the employees that affected by the environment created by the organisations

for long term. It attempts to make sure the voluntary resignation from the position

will be minimised and also the employees able to stay in the company (Ng’ethe,

Namusonge, et al., 2012).

The primarily objective of the employee retention to minimize the talented employees

resigning from their position in the organisation due to it will impact the productivity

and delivery of service negatively (Chiboiwa et al., 2010). The organisation today is

not only facing the challenge in managing resources, retaining of the skilled and

talented employees is also one of the biggest challenge for the organisation. Retaining

the skilled and talented employee is important due to they have the ability to help the

organisations stay economically competitive (Das & Baruah, 2013). Although hiring

skilful and talented employees are important to the organisation, retaining the good

employees are much more important than hiring (Ahlrichs, 2000).

The managers and organisations are difficult to get proper approach to keep the

talented employees in order to replace the retired Baby Boomers employee (Frank,

Finnegan, & Taylor, 2004). According to Vaiman and Vance (2008), the tools of

retaining of the employees are categorised as intrinsic and extrinsic rewards. Intrinsic

rewards define as non-monetary rewards that are intangible while the extrinsic

rewards define as monetary rewards that are tangible. Messmer (2006) stated that the

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retention of employees can be achieved when the benefits, allowance, good work

environment and work-life balance are provided to the staffs and workers. Proper

implementation of retention strategies by organisations able to ensure the employees

to stay longer as well as achieve the organisational goal successfully (Davis, 2013).

The retention of the employees is important due to the organisations is not achieve

cost saving and less training to be conducted to the new hired employees, it also will

enhance the employees’ performance and productivities, and increase the profit and

achieve the organisational goals (Ahlrichs, 2000; Oladapo, 2014). Skilled and

talented employees are hard to replaced and they are important to the organisational

strategy and the competitiveness of the organisation in the global market (Frank et al.,

2004; Leign, 2002). However, failed to retain the important employees will decrease

the competiveness of the organisation (Rappaport et al., 2003) as well as increase the

risk of loss of the confidential data providing to their competitors (Frank et al., 2004).

2.1.3 Compensation

Compensation or reward is define as something that offer to the employees depended

on the contribution and performance of the employee by the organisations and also

considered as satisfaction of needs for the employees (Aguenza & Som, 2012). The

compensation for the employees is an important factor that motivate the employees

have a good work performance, and also a factor for people to search a job that meet

the their expectation hence they will contribute their ability and creativity (Odunlade,

2012). The organisations usually provide monetary or non-monetary compensation

for the employees based on the performance (Patnaik & Padhi, 2012).

The monetary compensations such as pension, salaries, profit sharing, bonuses,

commission, overtime pay and parental leave are considered as important factor to

attract the employees retain in the organisation. The non-monetary compensations

such as knowledge, effort and experience, company-paid car and company-paid house

are also contributed to the retention of employees (Ballentine, McKenzie, Wysocki, &

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Kepner, 2003; Tourangeau, Cummings, Cranley, Ferron, & Harvey, 2010). An

attractive package of compensation able to hold the potential employees (Neog &

Barua, 2015). Different organisations have their own compensation strategies to

retain the employees (Scott, McMullen, & Royal, 2012).

Compensations can motivate the employees to provide a good performance and

behaviours. Inappropriate compensation plan will let the organisations face the

difficulties by the dissatisfaction of the employees (Ng, Lam, Kumar, Ramendran, &

Kadiresan, 2012). A good compensation package can enhance the social status of the

organisations and also satisfied the financial and material needs of employee (Narang,

2013). The compensation plan in an organisation should has the ability to attract

talented and skilled employees, and become key factor to retain the employees and

also withstand the equity among them (Terera & Ngirande, 2014).

2.1.4 Leadership

Leadership defines as guidance from tutors that commonly are older or hold more

senior positions that accepted or be designated in order to guide, help and monitor the

employees from lower level position (Siegel, Rigsby, Agrawal, & Leavins, 1995).

Leadership was defined by Gonos and Gallo (2013) as the process to affect the

employees or influence the other members in order to accomplish the goals of the

organisations. Limsila and Ogunlana (2008) stated that leadership can improve the

organisational efficiency when it involved in management, and also acts as a tool to

achieve the organisational target and attitude.

The management of the organisations are usually involved in managing, organising,

making decisions, planning, and coordinating as well as recruiting talents. When the

managers are having inadequate in the leadership, the management of the

organisations cannot function well and affect the capability to lead the organisations’

members to achieve the goals (Gonos & Gallo, 2013). Hence the leadership is crucial

to the organisations. Effective leadership can bring to desired results at different level

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such as individual, group and also organisations (Belias & Koustelios, 2014; Yukl &

Van Fleet, 1992).

In addition, the style of leadership will give direct effect on the relationship among

managers and employees. Leadership influence the performance of employees,

satisfaction during the job and commitment to organisation and also the consistency

performance of an organisation (Van den Berg & Wilderom, 2004). The leadership

style used by the managers will affect the behaviours and thinking of the employees

positively or negatively in order to achieve the common goals (Irshad & Afridi, 2007).

2.1.5 Training and Development

Training and development was described by Ng et al. (2012) as a need for the staffs

and workers to learn and obtain different knowledge and specific skills hence they

able to perform task and enhance the organisational skills. Training and development

also defines as the growth of attitudes, knowledge and skills that required by the

employees in order to perform the tasks effectively or work systematically

(Tangthong, Trimetsoontorn, & Rojniruntikul, 2014). The competency of the

employee will be enhanced through the training and will direct positively impact on

the organisational productivity (Nadeem, 2010).

The purpose of the training and development is to establish the employees’ ability in

order to reach the organisations’ human capital requirements for current and also the

future (Ng’ethe, Iravo, et al., 2012). The objective of the organisation providing

training and development to workers is also for the retention and development of

skills of the employees (Hassan, Razi, Qamar, Jaffir, & Suhail, 2013). Training and

development also acts as a driving force to increase the staff retention rates especially

for the employees who want to pursue for career development (Chen, 2014).

Tummers, Groeneveld and Lankhaar (2013) mentioned that when the training and

development meets the employees’ expectation, it will correlate with the retention

rate of staffs positively.

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Besides of the benefits for the organisations, training and development can enhance

the employees’ personal advantages in competitiveness (Aguenza & Som, 2012).

Through the training and development, employees can enhance the specific skills, and

also become more disciplined and punctual to their work hence increase the

productivity and organisational performances (Gul, Akbar, & Jan, 2012). It is critical

for the organisations to offer training to the employees due to it will effect on the job

satisfaction and organisational commitment as well as employee retention (Jehanzeb,

Rasheed, & Rasheed, 2013).

2.1.6 Working Environment

Environment of work defines as a job environment that involved in many factors that

surrounding the employees such as social and cultural factors, chemical and

biological factors as well as physical factors (Folger & Cropanzano, 1998). Narang

(2013) described that working environment is the workplace for the employees

expected to show their personal and working abilities as well as to fulfil their basic

needs. In addition, working environment also acts as a crucial indicator of the

turnover rate of the employees in the organisations (Zeytinoglu & Denton, 2006).

The employees usually love to work in an organisation that can provide the

comfortable and harmonised working environment, and also offer suitable job

designation as well as workplace privacy and spaces. It can enhance the motivation

and hold the employees for long term (Wells & Thelen, 2002). A good working

environment should include some factors such as well communication and

collaborative culture, capable leadership, practice environment, and career

development as well as sufficient number of employees (Ritter, 2011). Tummers et al.

(2013) also suggested that good working environment should include job appreciation,

close relationship between colleagues, and without harassment and bullying. The

comfortable level in the working environment can determine employees’ job

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satisfaction level, and also work situation in order to enhance productivity (Noah &

Steve, 2012).

The working environment with poor management will effect on the turnover of the

employees (Maslach, Schaufeli, & Leiter, 2001). Besides, too much demanding of the

job by physically as well as mentally will reduce the job satisfaction thus lead to poor

working performance (Bordia, Restubog, Jimmieson, & Irmer, 2011). The managers

and the organisations are being suggested that to promote and improve, creating and

maintaining good and secure workplace environment to enhance the satisfaction of

employees and build the sense of belonging to the employees toward the

organisations (Fatima, 2011). When the organisations can increase the satisfaction

during work of the employees toward the working environment, the level of

commitment from the employees will enhance as well (Adekola, 2012).

2.1.7 Work-Life Balance

Guest (2002) defined work-life balance as a feeling of the balance between the works

with the rest of the life. Kirchmeyer (2000) defined work-life balance as the

individuals have achieved a satisfactory balance of work and life in all areas, through

personal resources, time, energy and commitment in all aspects. Commonly, an

individual show the similar time and commitment invested in the work and personal

activities will be considered as having high work-life balance (Virick, Lilly, & Casper,

2007). Work-life balance defines as the personal point of view that the compatibility

on the work and personal activities and inspire growth based on the current personal

life priorities (Kalliath & Brough, 2008).

Work-life balance is extent to the equally engagement of the individuals regarding to

their works and also able to satisfy the role of work and the family role. Three

components are included in work-life balance which are balance of time, balance of

involvement and balance of satisfaction (Greenhaus, Collins, & Shaw, 2003). The

employees will feel the work-life balance when no conflict available between the

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work and their family (Grzywacz & Carlson, 2007). Naithani (2010) stated that work-

life balance is a management between the works and the activities such as with family,

personal development, travel and leisure, involve in community activities as well as

be volunteers.

The organisations initiated the workplace practice with the purpose in facilitate the

understanding of the employees’ individual life and work (McCarthy, Darcy, &

Grady, 2010). The managers and organisations start to enhance the awareness and

notice on the potential advantages from the work-life balance (Downes & Koekemoer,

2011). Chao (2005) stated that in order to obtain a good performance from the

employees and decrease the rate of turnover, the organisations ought to provide the

flexibility to their employees to balance their personal and work life. A good work-

life balance should include the meaningful achievement in everyday and enjoy the

moment with the four quadrants of life such as work, family, society and individuals

(Ranjan & Prasad, 2013).

2.1.8 Job Satisfaction

Job satisfaction defined by Weiss (1999) as the evaluative judgment of the work by

the employees positively or negatively. Job satisfaction also considered as employees’

attitude towards the intrinsic or extrinsic aspects of the works, and felt it positively or

negatively (Bhuian & Mengue, 2002; Hunt, Chonko, & Wood, 1985). Satisfaction of

job acts as an attitude that created by the employees regarding to their work tasks

(Pool & Pool, 2007). Buitendach and Rothmann (2009) commented that job

satisfaction is a type of emotional reaction of the employees about the works.

Job satisfaction is a result of the employees think about how good of their jobs and

how fit of the employees with the organisation. It also shows how the employees

enjoy their works (Pool & Pool, 2007). When the organisations are offering desired

rewards and opportunities, good working environment, and the personal values of the

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employees are integrated into the organisation, the employees will experience job

satisfaction (Buitendach & Rothmann, 2009).

The measurement of the job satisfaction in an organisation is caused by the

organisation will face the losing of good employees if the job satisfaction is low

(Nadeem, 2010). The initiative and enthusiasm of the employees can be affected by

the job satisfaction (Al Jenaibi, 2010). Diaz-Serrano and Cabral Vieira (2005)

believed the job satisfaction able to affect the labour market behaviour and also the

productivity, effort of work, absenteeism and also turnover intention. Job satisfaction

is a good indicator to the personal well-being and also a predictor of the employee

turnover intention (Diaz-Serrano & Cabral Vieira, 2005; Gazioglu & Tansel, 2006).

Low job satisfaction will inversely turn the retention intention of the employee to

turnover (Michaels & Spector, 1982). Low job satisfaction show a significant impact

on the negative employee behaviours such as absenteeism and staff leaving (Dupré &

Day, 2007; J. K. Martin & Miller, 1986). Bokti and Talib (2009) suggested that the

organisations should rise the job satisfaction among the employees so as to have

quality employees, good work environment, and also the work itself. Job satisfaction

lead to high productivity and organisational commitment, and also reduce the absent

of the employees and turnover rate (Ellickson & Logsdon, 2002).

2.2 Review of Relevant Theoretical Models

2.2.1 Model 1: Compensation and Employee Retention

Figure 2.1: Model of Compensation with Employee Retention

Note: From Haider, M., Rasli, A., Akhtar, S., Yusoff, R. B. M., Malik, O. M., Aamir, A., … Tariq, F.

(2015). The impact of human resource practices on employee retention in the telecom sector.

International Journal of Economics and Financial, 2015(5), 63–69.

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The model above created by Haider et al. (2015) and research objective is

investigating the relationship between the compensation and employee retention. In

this study, independent variable is compensation while the dependent variable is

employee retention. The finding indicates that the significant relationship between the

compensation and employee retention positively with t=5.407 and p=0.0000 (p<0.01).

The hypothesis developed for this test which is compensation has positive

relationship with employee retention is accepted. The finding shows that the

compensation has positive effect on employee retention.

2.2.2 Model 2: Leadership and Employee Retention

Figure 2.2: Model of Leadership and Employee Retention

Note: From Ng’ethe, J. M., Namusonge, G. S., & Iravo, M. A. (2012). Influence of leadership style on

academic staff retention in public universities in Kenya. International Journal of Business and Social

Science, 3(21), 297–302.

Model above is developed by Ng’ethe et al. (2012). The research objective is to

describe and analyse the effect of the leadership on the public universities’ staff

retention in Kenya. In this study, leadership is the independent variable to the

employee retention which acts as the dependent variable. The result shows the

leadership has the significant effect on employee retention. The hypothesis which is

leadership has positive and significant influence toward employee retention is

accepted. The finding reveals the employee retention of the public universities’ staffs

was affected by the leadership significantly.

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2.2.3 Model 3: Training and Development and Employee Retention

Figure 2.3: Model of Training and Development and Employee Retention

Note: From Ldama, J., & Bazza, M. I. (2015). Effect of training and development on employees’

retention in selected commercial banks in Adamawa State-Nigeria. European Journal of Business and

Management, 7(36), 96–101.

This model is created by Ldama and Bazza (2015) to examine the influence of the

training and development on the staffs retention in commercial bank in Adamawa

State of Nigeria. The mode’s hypothesis is there is training and development has

positive relationship with retention of bank staffs. In this study, independent variable

is training and development while employee retention acted as dependent variable.

The result shows that the training and development has strong influence to the

retention of bank staffs significantly. Based on the result obtained, the hypothesis is

accepted and concluded that the training and development has affected on employee

retention positively.

2.2.4 Model 4: Working Environment, Rewards and Work-life Policies and

Employee Retention

Figure 2.4: Model of Working Environment, Rewards and Work-life Policies

Employee Retention

Note: From Shoaib, M., Noor, A., Tirmizi, S. R., & Bashir, S. (2009). Determinants of employee retention in telecom sector of Pakistan. Proceedings of the 2nd CBRC, Lahore, Pakistan, 14, 1–18.

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This model is developed by Shoaib, Noor, Tirmizi and Bashir (2009) and the research

purpose is to analyse the impact of the working environment, rewards and policies of

work-life on retention of the employees. The developed hypotheses for this study are

the better environment for working, rewards and policies of work-life have significant

impact on retention of the employees. Those three factors act as independent

variables and employee retention as dependent variable. The finding of the study

reveals that the working environment has affected on employee retention significantly

and positively with t=7.240 and p<0.01. Rewards shows significant positive impact

on the employee retention with t=6.312 and p<0.01. Work-life policies also shows

positive influence on the employee retention with t=5.652 and p<0.01. Those

hypotheses are accepted in this study.

2.2.5 Model 5: Work-Life Balance, Working Environment and Employee

Retention

Figure 2.5: Model of Work-Life Balance, Working Environment and Employee

Retention

Note: Akila, R. (2012). A study on employee retention among executives at BGR Energy Systems Ltd,

Chennai. International Journal of Marketing, Financial Services and Management Research, 1(9), 18–

32.

This model is developed by (Akila, 2012) to explore the relationship between the

work-life balance, working environment and retention of important staffs in BGR

Energy System Ltd, Chennai. In this study, work-life balance and working

environment are the independent variables while employee retention is the dependent

variable. The hypotheses developed for this model are there is the relationship

between work-life balance and working environment with employee retention. The

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finding of the research reveals that the correlation between work-life balance and

employee retention, and also between working environment and employee retention.

In addition, the research shows the work-life balance gave significant impact on the

retention of the employee.

2.2.6 Model 6: Job Satisfaction and Employee Retention

Figure 2.6: Model of Job Satisfaction and Employee Retention

Note: From Anis, A., Rehman, K., Rehman, I., Khan, M. A., & Humayoun, A. A. (2011). Impact of

organizational commitment on job satisfaction and employee retention in pharmaceutical industry. African Journal of Business Management, 5(17), 7316–7324.

This model is developed by Anis, Rehman, Rehman, Khan and Humayoun (2011) to

explore the relationship of the job satisfaction with employee retention. The

hypothesis for the model is job satisfaction has a positive relationship with employee

retention. The result shows that the significant relationship available between job

satisfaction and employee retention with p=0.000 (p<0.05). The hypothesis is

accepted in this study. The study shows that the job satisfaction will influence the

retention of employees in the organisations.

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2.3 Proposed Research Framework

Figure 2.7: Proposed Research Framework

Note: Developed for the research

Figure 2.7 displays the conceptual framework that proposed for this study. This

framework proposed that the six dimensions such as compensation, leadership,

training and development, working environment, work-life balance and job

satisfaction have \influence on the employee retention positively. In total six relevant

theoretical models have been reviewed and adapted for this study. The model of

compensation adapted from the studies by Haider et al. (2015) and Shoaib et al. (2009)

is contributed for the compensation with employee retention. The model of leadership

is adapted from the studies by Ng’ethe et al. (2012) is contributed to the leadership

with the employee retention. The model of training and development is adapted from

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the studies by Ldama and Bazza (2015) covered the training and development with

employee retention. The model of working environment and work-life balance are

adapted from the studies by Akila, (2012) and Shoaib et al. (2009) covered the

working environment and work-life balance with retention of vital employees. The

model of job satisfaction developed by Anis et al. (2011) covered the job satisfaction

with the employee retention.

The proposed conceptual framework consists of the variables from all the reviewed

models, such as compensation, compensation, leadership, training and development,

working environment, work-life balance, job satisfaction, and employee retention.

This conceptual framework will study the effect of the factors to the employee

retention of the workers among Generation Y in food manufacturing industry.

2.4 Hypotheses Development

2.4.1 The Relationship between Compensation and Employee Retention

A study conducted by Terera and Ngirande (2014) stated the compensation is an

important factor to attract and keep the talents in the company. Compensation is one

of the dimensions will impact on the behaviour of the employee in the organisation

through their attitudes. Appiah, Kontar and Asamoah (2013) stated that if the

employees are dissatisfied to the compensation, they will try to search for new

opportunities. Low salary and rewards will cause the employees feel job

dissatisfaction and lead to turnover (Greenberg & Baron, 2008). Hence, compensation

can be a predictor of the turnover of staffs (Pitts, Marvel, & Fernandez, 2011).

The study by Lockwood (2006) found that the package of compensation can lead to

retention, and also can be a strong indicator for the organisation and the employees.

Compensation will influence the turnover by voluntary and involuntary. Zingheim,

Schuster and Dertien (2009) stated that although competitive package of pay and

benefit is not the most important factor will affect the employee retention, but it still

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acts as an important element that will impact on the retention of employees.

According to Hausknecht, Rodda and Howard (2009), extrinsic rewards such as pay

and benefits will contribute to the retention of the employees. The study by Hong et al.

(2012) found the compensation has the relationship with the employee retention

positively. Hytter (2007) concluded that reward and retention of employee has a

correlation relationship.

After reviewed the previous studies about the compensation and employee retention,

the proposed hypothesis shows as below:


2.4.2 The Relationship between Leadership and Employee Retention

Leadership acts as an interaction process among the supervisors and the employees

when the leader tries to give the influence to the employees to affect their behaviours

in order to achieve the goals (Voon, Lo, Ngui, & Ayob, 2011). Leadership style will

affect the employees directly or indirectly to decide to stay or leave the organisation.

The leaving of the employees might cause by leaving of the manager but not the

organisation (Azeez, 2017). The study by Kroon and Freese (2013) stated that the

leadership acts as important role in the retention of the employees. George (2015)

mentioned that there is two perspectives of the management will effect on the

employee retention, and leadership style acts as one of the perspectives besides of

management support.

The study of Ellett, Ellis and Westbrook (2007) shows that leadership along with the

supportive and quality supervision has impact the retention positively. Wakabi (2016)

found the leadership style and retention of staff has a positive relationship in the

organisations. Duffield and O’Brien-Pallas (2003) found the leadership and employee

retention has correlation relationship, and the leadership will contribute to the

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retention of employees. The study by Welding (2011) found that the managers and

employee has a significant relationship on the turnover rate.

After reviewed the previous studies about the leadership and employee retention, the

proposed hypothesis shows as below


2.4.3 The Relationship between Training and Development and Employee

Retention

Training and development is educational content or approach that planned for sharing

the organisational culture, and transfer the knowledge and skills to the employees

such as workplace skills, creative idea, leadership development and problem solving

methods (Jehanzeb & Bashir, 2013). Through the training and development the

employees can find themselves more comfortable to the environment and know how

to face the challenge (Elnaga & Imran, 2013). Employees will think about the training

and development as the important element to the overall growth of their career and

they will be encouraged to stay and develop their career path in the organisation

(Salami, 2008). The study by Horwitz, Heng and Quazi (2003) stated that personal

and professional growth can be used to determine the employee retention and the

opportunities for promotion will enhance the intention to stay.

Through training and development the organisation can enhance the rate of retention

and lead to decrease of turnover (Hassan et al., 2013). Leidner and Smith (2013)

found that training and development was improved the loyalty of the staffs. The study

by Jehanzeb and Bashir (2013) found that the training and development of the

employee has significant relationship with the retention of the employees. The study

by Deery (2008) shows the retention among the employees will be increased through

the job training. Kroon and Freese (2013) also found that the opportunities of the

development have positive impact on the commitment to stay of the employees.

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After reviewed the previous studies about the training and development and employee

retention, the proposed hypothesis shows as below:


2.4.4 The Relationship between Working Environment and Employee

Retention

Working environment should be well designed thus can meet the satisfaction among

the employees, and also allows the free flow of the ideas to increase the motivation

among the employees hence lead the employees provide long-term commitment

(Wells & Thelen, 2002). The management of working environment with the

conditions such as attractive, innovative, satisfactory and motivation among the

employees will lead them towards common goals and direction (Taiwo, 2010).

Bakotic and Babic (2013) found that if the employees are under a difficult working

environment, they will feel dissatisfaction to their works. A good working

environment provided by the organisation will cause the staffs and workers sense that

they are being valued and difference, and will work harder and stay in the

organisation (Ramlall, 2003)

Shoaib et al. (2009) stated that working environment is a crucial element to determine

the retention of the employees besides of the high salary to play to retain the

important employees. The study by Spence, Leiter, Day and Gilin, (2009) found that

a favourable working environment for the employee will contribute to the employee

retention in the organisation. In addition, the study by Narang (2013) reveals that the

respondents agreed that environment of the work will influence on retention and

satisfaction. Basak and Ghosh (2011) revealed that the employees will feel

comfortable and satisfied to their works in a good working environment. The study of

Zeytinoglu and Denton (2006) revealed that the working environment will impact on

the employees’ intention of stay decision in the organisation.

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After reviewed the previous studies about the working environment and employee



2.4.5 The Relationship between Work-Life Balance and Job Satisfaction

Work-life balance is getting important in affecting the employees’ intention and

decision to stay in the organisation. Ellenbecker (2004) stated that the flexible

schedule of work will make the employees to take care of their personal life and

professional life, and lead to longer staying in the organisation. The model proposed

by Shoaib et al. (2009) had explained the employees’ behaviours on work-life balance

and employee retention in the organisation. Pasewark and Viator (2006) mentioned

that the flexible work arrangement is vital to the work family support in their study,

and acts as an important predictor in the employee retention. The study by Deery

(2008) stated that the work-life balance plays an important role and has direct

relationship with the retention decision in the organisation of the employees.

The study by Osman (2013) found that the work-life balance will provide employees

the emotional support and reduce the turnover intention. Loan-Clarke, Arnold,

Coombs, Hartley and Bosley (2010) found the organisation provide the employees to

fulfil the family responsibilities will enhance the retention of employees. The study of

Shoaib et al. (2009) shows the work-life balance possesses a positive relationship

with and effect on the employee retention directly. A study of the Japanese firms had

showed the implementation of work-family balance policies has an impact on the

level of turnover of female employees significantly (Yanadoria & Katob, 2010). The

study by Mita et al. (2014) found the work-life balance possesses the direct

relationship with the decision to continue staying in the organisation of the employees.

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After reviewed the previous studies about the work-life balance and employee



2.4.6 The Relationship between Job Satisfaction and Employee Retention

Lane, Esser, Holte and McCusker (2010) stated that job satisfaction is an important

factor that caused the employees choose the what organisations to work and also has

the effect on the retention or turnover intention among employees. In the study of

factors influencing the staff retention in Scottish tourism industry, the findings show

the factors have the effect on job satisfaction are also influence on the employee

retention (Martin, Mactaggart, & Bowden, 2006). The study of the factors affect the

nurses retention by Leurer, Donnelly and Domm (2007) found that high job

satisfaction can help to increase the retention rate. The study by Mahmoud (2008)

found that the poor compensation will lead to low job satisfaction then influence on

the employee retention. According to Mor Barak, Nissly and Levin (2001), the

relationship among the retention and turnover is inversed.

A study of Egan and Kadushin (2004) found that the employees with high level of

satisfaction will choose to stay in the organisations while they will leave the

organisations when they felt dissatisfaction. Brough and Frame (2004) proved that the

job satisfaction can be acted as a predictor for the intention of turnover among the

police personnel. The study among the IT professional by Rahman, Naqvi and Ramay

(2008) shows that job satisfaction will impact on the turnover intention negatively.

The study by Harman, Blum, M., Stefani and Taho (2009) found that job satisfaction

is significantly affect the leaving intention of the employees from their position. Vos

and Meganck (2009) revealed that the job satisfaction is an important factor cause the

voluntary turnover. In the study by Paillé, Fournier and Lamontagne (2011) for the

improvement of employee retention has discovered that the job satisfaction has the

effect on the intention of employees’ leaving.

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After reviewed the previous studies about the job satisfaction and employee retention,

the proposed hypothesis shows as below:


2.5 Conclusion

The chapter concentrated the literature review for the six dimensions such as

compensation, leadership, training and development, working environment, work-life

balance and job satisfaction, and also the Generation Y and employee retention.

Chapter 2 reviews the relationship of factors with the employee retention among the

Generation Y in food industry. The proposed conceptual framework of the study had

presented in this chapter. Besides, hypotheses of this study have been developed in

order to be tested after the literature review. The coming chapter will concentrate on

the research design and methodology that are utilised for the data analysis in this

study.

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CHAPTER 3

RESEARCH METHODOLOGY

3.0 Introduction

Research methodology was using specify procedures and methods to collect accurate

and appropriate information for the study. This chapter will elaborate on the methods

that how the researcher carried out for the study which is the factors (compensation,

leadership, training and development, working environment, work-life balance and

job satisfaction) that affecting the employee retention among the Generation Y in

food industry. This chapter contains research design, data collection methods, sample

design, research instrument, construct measurement, data processing and data analysis.

3.1 Research Design

In this section, it explains the study design for employee retention among the

Generation Y in food industry of Malaysia. As mentioned by Zikmund (2003),

research design is the core plan for a study to describe the procedures and methods

that collecting, analysing and evaluating the data and information. Research design

shows the way how the researcher implements the project practically, and acts as a

framework for the project guidance in gathering and analysing the data (Saunders,

Lewis, & Thornhill, 2012). Zikmund, Babin, Carr and Griffi (2010) indicated that

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there are two types of research design for a study and they are qualitative method and

quantitative method.

Qualitative method acts as an approach that includes interview in semi-structure or

unstructured form, participation observation and analysis of the content well as the

narrative analysis for the achievement of the person, and also gather, analyse and

interpret the data and information. Quantitative method is an approach that using for

compute, analyse and evaluate the collected data and information that consist of

rating scales, questionnaires in structured form, and also the structured observation

(Zikmund et al., 2010).

3.1.1 Quantitative Method

Quantitative research method was carried out in this study. According to Saunders et

al. (2012), quantitative method is an approach that produce the numerical data by

using the collected data for the study. Zikmund et al. (2010) stated that the

quantitative method is a deliberate method that used to understand the models by

using empirical investigation, traditional or computational mathematical. Due to the

quantitative method can enclose the widespread population, it is more appropriate and

effective to test and examine the hypotheses of the study and also develop the

numerical models as well as the theories to the study. In addition, the gathered

information and also the data that collected by quantitative method is in the form of

number or statistics such as percentage or rates.

3.1.2 Causal Research

In this study, the causal research is chosen. The relationship of cause-and-effect

between the variables is studied by casual research (Zikmund et al., 2010). Causal

research can be used to study how the impacts of the independent variables influence

the dependent variable. Comparing to other technique, causal research is more

appropriate for the researcher uses in this study to examine the relationship between

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the independent variables include compensation, leadership, training and

development, working environment, work-life balance and job satisfaction, and the

dependent variable (employee retention) for the employee of Generation Y in food

industry.

3.2 Data Collection Methods

The information and data takes the significant role in the research due to the data that

collected by the researcher will be interpreted and converted into the meaningful

information from the raw data. The primary data and the secondary data act as two

types of data in a study (Zikmund et al., 2010). Using a suitable method to get the

precise data is important due to the inappropriate method will cause inaccurate results.

In this study, the researcher is using the questionnaire for the primary data for the data

collection.

3.2.1 Primary Data

Primary data is described as those data and information obtained via the first hand

(Saunders et al., 2012). Sekaran and Bougie (2003) state that comparing to secondary

data, the primary data is more credible and reliable as well as objective due to the

data is not published yet. The self-administered questionnaire is used in this study to

gather the quantitative data. Zikmund et al. (2010) mentioned the self-administered

questionnaire is filled by the respondents alone and no assistance received from the

researcher. The questionnaire that used in this study is revised and adopted from

relevant research journals rather than develop own questions in order to confirm the

questions accuracy and distributed to the targeted respondents. Most of the

respondents are dislike on long feedback questionnaire and personal interview, hence

the questionnaire will be simple and clear in order to obtain adequate feedback and

prevent data error.

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3.3 Sampling Design

The sampling is described as choosing sample from large population. The sampling

technique is crucial to increase the data collection validity and make sure the sample

can represent the population. Through the sampling the researcher can reduce the data

that need to be collected and make a conclusion to represent the whole population

(Zikmund, 2003). Sampling design helps the researcher to obtain better understanding

to the characteristics, and also standardize the population elements easily.

3.3.1 Target Population

Sekaran and Bougie (2003) stated target population as the entire group that consists

of the individuals that the researcher wants and interests to study. The researcher will

examine the relationship between the six factors and the retention of Generation Y

workers work in food industry in this study. The targeted the respondents for the

study are the Generation Y born from 1980 to 2000 who are defined by Eisner (2005).

According to Department of Statistics Malaysia, Generation Y consists of 38.2% of

the population or about 10.8 million in Malaysia (Lau, 2014).

As mentioned at previous chapters, the numbers of Generation Y as the workforce are

getting higher and started to replace the older generations such as Baby Boomers in

the workplace. In addition, Generation Y is expected will be the largest workforce in

the next few years. Hence the study of the factors that affecting the employee

retention is important to the managers and organisations in order to sustain the

competitiveness, and also provides the information to the academic purpose.

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3.3.2 Sampling Elements

The respondents in the study are the Malaysian employees who are Generation Y and

currently working in food industry. In recent years, the studies of the employee

retention or turnover in Malaysia are focused on health-care sector and hospitality

industry (AlBattat & Som, 2013; AlBattat et al., 2013; Aziz et al., 2017; Omar et al.,

2013; Rahim & Mwanri, 2014; Sangaran & Jeetesh, 2015). The studies of the

employee retention in food industry are still limited. The research gap had raised the

interest of the researcher to study retention factors among the Generation Y workers

in food industry. Hence, the food industry is selected to study the employee retention

among Generation Y in Malaysia.

The respondents have different background and come from different levels. They

provided their experience and the knowledge to this study. In addition, the

questionnaires are distributed to the respondents in different ranges such as year of

born, gender, marital status, education levels, years of working experience, and job

positions. This information helps the researcher to obtain different sights from the

respondents with different background and allow the study becomes more reliable.

3.3.3 Sampling Size

The Central Limit Theorem indicated that the size of the samples have to be 30 or

higher in order to be measured as a large size of sample (Sekaran & Bougie, 2003).

According to the rule of thumb, the numbers of sample more than 300 will be

measured as good sample size, while 200 will be considered as fair sample size and

100 is poor sample size (Manning & Munro, 2007). Saunders et al. (2012)

commented that the sample size with 300 samples is able to represent a large

population. Thus the sample size is 300 in this study.

According to those survey response rate study of the journals published in year 2000

and 2005 by Baruch and Holtom (2008), the production (manufacturing) sector

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response rate was having maximum 91.2% and average 50.3% response rate. Hence,

more than 300 questionnaires were distributed to the selected samples, to ensure the

questionnaires can be collected with minimum 300 samples for the study.

3.3.4 Sampling Technique

Two main types of the sampling techniques are available for the researcher to conduct

the study. Probability sampling techniques and non-probability sampling techniques

are the types of sampling technique. The probability sampling technique is the

samples are selecting from the population which is being known, and the types of

probability sampling technique include cluster sampling, systematic sampling,

stratified sampling and simple random sampling. The non-probability sampling

technique is the samples are selecting from the unknown population and the types of

this technique include snowball sampling, quota sampling, judgment sampling and

convenience sampling (Zikmund et al., 2010).

This study is using the probability sampling technique, and simple random sampling

is selected to be the part of the method. In Malaysia, there are five economic corridors

currently play the roles as the platforms to promote the business incentives and free

trade in each investment regions. The five corridors are Iskandar Malaysia in

Southern Johor (IRDA), Northern Corridor Economic Region (NCER), East Coast

Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak

Corridor of Renewable Energy (SCORE) (Ali, 2017; MIDA, 2018). Five economic

corridors were written on five paper slips separately and put into a box. One slip was

picked randomly by the researcher from the box to determine the sample location for

the study. Iskandar Malaysia in Southern Johor is selected for the study.

The questionnaires had distributed to the Generation Y respondents who are working

in food manufacturing companies in Iskandar Malaysia. The questionnaire is set by

using English as the language, and the researcher will explain to the respondents who

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cannot understand English with the language they understand such as Mandarin and

Malay language.

3.3.5 Sampling Frame and Sampling Location

The sampling frame is defined as a method that offered for selecting the respondent

from the targeted population for the study. The relationship between the selected

population and department of selection is the major consideration for the appropriate

frame (Zikmund et al., 2010). The questionnaires for this study are distributed

through the employees work in the companies in Iskandar Malaysia in Southern Johor.

The research is targeted the food manufacturing companies in Iskandar Malaysia as

the sampling location. According to the Department of Statistics Malaysia, Johor had

achieved the top 3 of the economic growth with 5.7% in 2016 along with Labuan and

Kuala Lumpur, and also listed as top 5 of the GDP contribution by state with 9.4% in

2016 along with Selangor, Kuala Lumpur, Sarawak and Pulau Pinang. In the

performance based on the sector, Johor also achieved top 3 in the manufacturing

sector (12.6%) and agriculture sector (15.7%) in 2016 (DOSM, 2017).

Comparing to the other four economic corridors, Iskandar Malaysia was the most

successful economic growth corridor in Malaysia. The size of Iskandar Malaysia is

two times larger than Hong Kong and three times larger than Singapore. Since 2006,

Iskandar Malaysia had received RM 208 billion in the investment. The manufacturing

sector in the Johor was the top investment destination in Malaysia. From 2010 to

2015, manufacturing sector of Johor received RM 86.3 billion in investment, and also

created more than 20,000 job opportunities (Musa, 2016).

The food processing is selected and promoted in the manufacturing sectors in

Iskandar Malaysia, as an important region driven for the economic growth corridor

(Iskandar Malaysia, 2016). There are a lot of food manufacturers are available in

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Iskandar Malaysia included MNC and SME food manufacturers. Hence the

researcher is easier to collect the data and information for this study.

3.4 Research Instrument

3.4.1 Origin of Constructs

The questionnaire’s questions in used in the study were adapted and adopted from

different researchers, include Rowden and Ahmad (1999), Demo, Neiva, Nunes, and

Rozzett (2012), Stringer (2006), Hooi (2007), Singh (2010), Moyes and Redd (2008),

Kalbers and Cenker (2007), and Kyndt, Dochy, Michielsen and Moeyaert (2009).

Table 3.1 shows the questions and the questions’ contributors for the questionnaire

that used in this study:

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Table 3.1: Origin of Constructs of the Questionnaires

Section A

Information Items Adapted/Adopted from

Demographic Profile 6 Self-developed

Section B

Independent Variables Items Adapted/Adopted from

Compensation 5 Rowden & Ahmad (1999)

Leadership 5 Stringer (2006)

Training and Development 6 Hooi (2007)

Working Environment 6 Demo, Neiva, Nunes, &

Rozzett (2012)

Work-Life Balance 5 Singh (2010)

Job Satisfaction 7 Moyes & Redd (2008)

Dependent Variable Items Adapted/Adopted from

Employee Retention 6 Kalbers & Cenker (2007) /

Kyndt, Dochy, Michielsen,

& Moeyaert (2009)

Total 45

Note: Developed for this study.

The questionnaire is developed by the questions that used in past studies from

different researchers. Section A is developed by the researcher in this study, the

questions include year of born, gender, marital status, education levels, years of

working experience, and job positions. Section B is the questions focused on the

independent variables and dependent variables for this study. For questions of the

independent variables, compensation is adapted from Rowden and Ahmad (1999).

Working environment is adapted from the study by Demo, Neiva, Nunes, and Rozzett

(2012), and leadership is adopted from the study by Stringer (2006). The questions of

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training and development is adapted from the study Hooi (2007) while the work-life

Balance is adopted from the study by Singh (2010). The questions of job satisfaction

is adopted from the study by Moyes & Redd (2008) For dependent variable, the

questions of employee retention is modified from the studies by Kalbers & Cenker

(2007), and Kyndt, Dochy, Michielsen and Moeyaert (2009).

3.4.2 Questionnaire Design

The design questionnaire process is vital because the researcher wants to gain the

relevant and accurate information from the respondents for the study. There are two

types of questions for the questionnaire, one is open-ended question and another one

is close-ended question. This study, the close-ended questions are used for by the

researcher. Using the close-ended questions will allow the respondents provide the

more specific and limited alternative response by selecting the best answer to

represent the point of views of the respondents (Zikmund et al., 2010).

The questionnaire presented two different sections, which are Section A and Section

B. Section A is used to gather the information and data regards to the profile of

demographic of the respondents, such as the year of born, gender, marital status,

education levels, years of working experience, and job positions. This data allow the

researcher has a clear sight and understanding on the demographic information about

the respondents.

The objective of the Section B is collecting the data about the independent variable

for this study such as compensation, leadership, training and development, working

environment, work-life balance and job satisfaction, and also the data for the

dependent variable which is employee retention. The Five-Likert scale is used for the

questions in the survey for this study to test the response of the samples. The Likert

scale is ranging from strongly disagree to strongly agree. Likert scale is widely used

as a method to collect the answers from the respondents for the survey study. Likert

scale helps the researcher to obtain a overall estimation of results and conclusion for a

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particular topic, experience or the feeling that is required by the study (Losby &

Wetmore, 2012).

3.4.3 Pilot Study

Before the research performed, a pre-test instrument that is pilot study will be used

(Polit, Beck, & Hungler, 2001). The pilot test enable the researcher to investigate the

survey instruments, find out the error that present in the survey instrument, research

instrument validation, and proposed method validation (Baker, 1994).

According to Polit et al. (2001), the small scale version of sample is adequate for the

pilot study. To perform the pilot study, generally the reasonable respondents’

numbers that needed for pilot study is the 10% to 20% of the exact study sample size

(Baker, 1994). The pilot study for this study is enrolled 30 respondents by distributed

30 sets of questionnaires randomly to them. The data collected for pilot test is

analysed by SPSS software. The result needs to have more than 0.70 for the value of

reliability to show that the variables are good for the exact study. The questionnaire is

improved and amended upon the feedbacks from the respondents, such as certain

phrase or words are offensive or cannot understand by the respondents.

Table 3.2: Reliability Statistics (Pilot Test)

Variables Cronbach's

Alpha

Number of

Items

Compensation 0.870 5

Leadership 0.857 5

Training and Development 0.851 6

Working Environment 0.806 6

Work-life Balance 0.855 5

Job Satisfaction 0.880 7

Employee Retention 0.903 6


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3.5 Construct Measurement

The exploration instrument utilised for this study is the questionnaire and it was

consisting of the questions’ lists to gather the data from the respondents that needed

by the researcher. There are four measurement scales that used to examine and

investigate the different types of data and information and lead the data to sufficient

measurement, such as nominal scale, ordinal scale, interval scale and ratio scale

(Zikmund, 2003)

3.5.1 Nominal Scale

Nominal scale is used for the information that without the quantitative value. The

nominal scale is assign the specific group or categories for a value (Sekaran & Bougie,

2003). Usually use for the naming variable. The demographic profiles from the

respondents for the Section A of the questionnaire are collected by nominal scale and

ordinal scale. The information that is using the nominal scale includes gender and

marital status in the questionnaire for this study.

3.5.2 Ordinal Scale

A ranking scale that without the interval value between the ranking is ordinal scale

(Sekaran & Bougie, 2003). The ordinal scale is collecting the information from the

respondents in the Section A which is the demographic profile along with the nominal

scale. The information that is collected by the ordinal scale include the year of born,

education levels, years of working experience, and job positions.

3.5.3 Likert Scale (Interval Scale)

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The Five-Likert scale is used as the interval scale to gather all data from the

respondents in Section B of questionnaire. Interval scale is used to measure the

different scale in the preferences among the respondents (Sekaran & Bougie, 2003).

The questions in the Section B include the both independent and dependent variables,

and measured by the Five-Likert scale. The respondents had answered the questions

based on the five alternative options which represented by the numbers ranging from

1 to 5, which 1=Strongly disagree, 2=Disagree, 3=Neutral, 4=Agree and 5=Strongly

agree.

3.6 Data Processing

The data processing is collecting and controlling those information in order to convey

the important data. Data checking acts as an main step for the data processing due to

it allows the researcher to make sure the questionnaires taken back from the

respondents are filled completely and correctly (Zikmund et al., 2010). The missing

data will cause the data that entered unto the system become inaccurate during data

analysis. Hence the data checking allows the researcher to reduce and detect the

questionnaires that cannot be accepted or incomplete. Those questionnaires will be

removed by the researcher to enhance the reliability for the tests.

3.7 Data Analysis Method

The SPSS (Statistical Package for the Social Sciences) software is used to perform

the data analysis. SPSS is the software that coordinates the entire analysis process by

coordinating the whole analytical procedure of the study, from scheduling and

information collection to investigation, reporting and deployment. The data and

information that obtained in for this study is inserted into the SPSS and few analyses

that available in SPSS are performed include Descriptive Analysis, Reliability

Analysis, Correlation Analysis, and Multiple Regression Analysis.

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3.7.1 Descriptive Analysis

Descriptive analysis is used to describe those basic elements of data and information

to the study. Descriptive analysis represents an informative method that organising,

summarising and presenting the data. The central tendency and measure of variability

are measured for the descriptive analysis. Descriptive analysis uses the average,

frequency distribution and percentage of the information of respondents’

demographic profile.

3.7.2 Reliability Analysis

Reliability determines the level of scale that produces the consistent results when the

approximations or tests were being repeated many times (Zikmund et al., 2010). The

reliability analysis is controlled by obtaining the amount of the system diversity in the

scale. The reliability analysis is determined by the relationship among the scores

obtained from the different samples of the scale. If reliability of the test is high, the

scale will produce the predictable and consistent result in order to show the results

obtained are reliable.

The Cronbach’s alpha acts as the most often value to indicate the reliability

measurement. The Cronbach’s alpha is frequently used to define the scale reliability

that developed from various Likert scale questions in the questionnaires (Zikmund et

al., 2010). In this study the Five-Likert scale questionnaire is used. Hence the

Cronbach’s alpha is used for reliability analysis in this study. The analysis is

performed by SPSS software. The Cronbach’s alpha measurement shows at Table 3.2:

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Table 3.3: Cronbach’s alpha Measurement

Coefficient Alpha (α) Range Strength of Association

< 0.6 Poor Reliability

0.6 to < 0.7 Moderate Reliability

0.7 to < 0.8 Good Reliability

0.8 to < 0.9 Very Good Reliability

0.90 or Above Excellent Reliability

Note: Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2010). Business Research Methods (8th ed). New York: South-Western/Cengage Learning.

3.7.3 Pearson Correlation Analysis

To explore the relationship between the various variables, the correlation method will

be used. In this study, the Pearson Correlation Analysis was selected to measure the

strength of association for the relationship among the independent variables and

dependent variables. The analysis was performed by SPSS software.

The range of value of the Pearson Correlation Analysis is from +1 to -1. If the value

is more than 0, it will indicate that the relationship is positive association while below

0 will be negative association. When the result value is 0, it means that no

relationship is available between the variables (Hinkle, Wiersma, & Jurs, 2003). The

Table 3.3 shows the measurement of correlation:

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Table 3.4: Measurement of Pearson Correlation

Size of Correlation Interpretation

0.90 to 1.00 (-0.90 to -1.00) Very high positive (negative) correlation

0.70 to 0.90 (-0.70 to -0.90) High positive (negative) correlation

0.50 to 0.70 (-0.50 to -0.70) Moderate positive (negative) correlation

0.30 to 0.50 (-0.30 to -0.50) Low positive (negative) correlation

0.00 to 0.30 (0.00 to -0.30) Little if any correlation

Note: Hinkle, D. E., Wiersma, W. & Jurs, S. G. (2003). Applied Statistics for the Behavioural Sciences. Boston: Houghton Mifflin.

3.7.4 Multiple Regression

Multiple regression analysis is generally utilised for the determination of the

relationship between the both variables and used as the prediction for the dependent

variable (Y) value that influenced by the independent variable (X) value. To perform

the multiple regression analysis, the independent variables and dependent variable

should be metric and interval scales. The variable that to be predicted and explained

is the dependent variable (Y) (Zikmund et al., 2010). The relationship between

independents variables and dependent variable is expressed in the equation below:

ER = a + b1CP + b2L + b3TD + b4WE + b5WLB + b6JS

Where, ER = Employee retention

a = Constant value, value of Y when X equal to 0

CP = Compensation

L = Leadership

TD = Training and development

WE = Working environment

WLB = Work-life balance

JS = Job satisfaction

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The employee retention is acted as dependent variable when researcher was testing on

the factors that affect the employee retention. Hence the factors (compensation,


job satisfaction) are the independent variable. The multiple regression analysis lets

researcher to examine and analysis whether the relationships between the variables in

this study are significant.

3.8 Conclusion

The methods that used for this study had described and discussed in this chapter. The

SPSS software is used to analysis all the data that collected from the respondents for

this study. Next chapter will highlight on result interpretation of this study.

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CHAPTER 4

RESEARCH RESULTS

4.0 Introduction

Chapter 4 shows the overview of the findings analysed from the collected data by

researcher. The results were analysed by the statistical software “IBM SPSS Statistics

(SPSS)”. The results analysed according to the objectives of the study to examine the

six factors affecting employee retention of the Generation Y workers in food industry.

The tests conducted in this study included descriptive analysis, reliability test, and

inferential analysis which are Pearson Correlation Analysis and Multiple Regression.

4.1 Response Rate

Table 4.1: Response Rate of Questionnaires

Questionnaires Distributed 350

Total Response 314

Total Response Rate (%) 89.71%


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In order to obtain 300 samples, 350 sets of questionnaires were dispersed to the

respondents working in food companies at Iskandar Malaysia. In total 314

questionnaires were received by the researcher, indicating a response rate of 89.71%.

All received questionnaires were checked to ensure all the questions have been

answered. Based on Saunders et al. (2012), 300 samples as sample size is enough to

represent a large population.

4.2 Descriptive Analysis

The data of the respondents’ demographic profile were analysed by the descriptive

analysis. The information and data analysed through the descriptive analysis included

gender, born year, marital status, education level, job position and work experience.

In total 314 responses collected by the researcher will be explained and displayed in

tables and bar charts to make the data easier to understand.

4.2.1 Gender

Table 4.2: Frequency Table of Respondents’ Gender

Gender

Frequency Percent Valid Percent Cumulative Percent

Valid Male 160 51.0 51.0 51.0

Female 154 49.0 49.0 100.0

Total 314 100.0 100.0


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Figure 4.1: Bar Chart of Respondents’ Gender


The Table 4.2 and Figure 4.1 show the frequency and percentage of the gender of the

respondents collected by the researcher for this study. Based on the results

demonstrated in the Table 4.2 and Figure 4.1, the male respondents consist of 160

respondents out of total number of respondents, or 51.0% of total number of

respondents collected by the researcher. The numbers of female respondents are 154

or 49.0% of the respondents collected by the researcher. In comparison, the numbers

of male respondents are slightly higher than the female respondents.

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4.2.2 Born Year

Table 4.3: Frequency Table of Respondents’ Born Year

Born Year


Valid 1980 to 1985 63 20.1 20.1 20.1

1986 to 1990 109 34.7 34.7 54.8

1991 to 1995 91 29.0 29.0 83.8

1996 to 2000 51 16.2 16.2 100.0

Total 314 100.0 100.0


Figure 4.2: Bar Chart of Respondents’ Born Year


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The Table 4.3 and Figure 4.2 show the frequency and percentage of the born year of

the respondents collected by the researcher for this study. The respondents were

categorised into four different born year groups, which are 1980 to 1985, 1986 to

1990, 1991 to 1995, and 1996 to 2000. The largest born year group is 1986 to 1990,

which contained 109 respondents or 34.7% of total number 314 respondents. Second

largest born year group is 1991 to 1995, which consists of 91 respondents or 29.0% of

the total number of respondents, and followed by 1980 to 1985, which consists of 63

respondents or 20.1% of the total number of respondents. Lastly, 1996 to 2000 is the

smallest born year group, which consists of 51 respondents or 16.2% of the total

number of respondents.

4.2.3 Marital Status

Table 4.4: Frequency Table of Respondents’ Marital Status

Marital Status


Valid Single 153 48.7 48.7 48.7

Married 161 51.3 51.3 100.0

Total 314 100.0 100.0


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Figure 4.3: Bar Chart of Respondents’ Marital Status


From results shown in the Table 4.4 and Figure 4.3, the numbers of respondents with

single status are 153, and contributing 48.7% of the total number of respondents

collected by the researcher. In comparison, the numbers of respondents with married

status are slightly higher than single status, which contained 161 respondents, or 51.3%

of the total number of collected respondents.

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4.2.4 Education Level

Table 4.5: Frequency Table of Respondents’ Education Level

Education Level

Frequency Percent Valid

Percent

Cumulative

Percent

Valid Primary School 17 5.4 5.4 5.4

Secondary School 110 35.0 35.0 40.4

STPM/UEC/Diploma 71 22.6 22.6 63.1

Bachelor's Degree 92 29.3 29.3 92.4

Postgraduate 24 7.6 7.6 100.0

Total 314 100.0 100.0


Figure 4.4: Bar Chart of Respondents’ Education Level


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As results shown in Table 4.5 and Figure 4.4, most of the respondents are with the

education level of Secondary School, which consist of 110 respondents, or 35.0% of

the total number of respondents. The Bachelor’s Degree is the second largest

education level in this study with 92 respondents (29.3%) and followed by

STPM/UEC/Diploma with 71 respondents (22.3%). In total 24 respondents (7.6%)

hold the Postgraduate Degree and only 17 respondents (5.4%) are with Primary

School level.

4.2.5 Job Position

Table 4.6: Frequency Table of Respondents’ Job Position

Job Position


Percent

Cumulative

Percent

Valid Operator 127 40.4 40.4 40.4

Supervisor 73 23.2 23.2 63.7

Executive/Officer 72 22.9 22.9 86.6

Manager/Managerial

Role

42 13.4 13.4 100.0

Total 314 100.0 100.0


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Figure 4.5: Bar Chart of Respondents’ Job Position


The Table 4.6 and Figure 4.5 indicated that the most of the respondents work as

Operator in this study with 127 respondents and accounted 40.4% of total number of

respondents. The respondents work as Supervisor consists of 73 respondents with

23.2% of total number of respondents. Executive/Officer level is slightly lower than

Supervisor level with 72 respondents (22.9%). Lastly, only 42 respondents (13.4%)

are involved in Manager/Managerial Role level in this study.

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4.2.6 Work Experience

Table 4.7: Frequency Table of Work Experience

Work Experience


Percent

Cumulative

Percent

Valid less than 1 year 40 12.7 12.7 12.7

1 to 5 years 93 29.6 29.6 42.4

5 to 10 years 97 30.9 30.9 73.2

more than 10 years 84 26.8 26.8 100.0

Total 314 100.0 100.0


Figure 4.6: Bar Chart of Respondents’ Work Experience


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With regards to work experience years of the collected respondents, the most of the

respondents already working for 5 to 10 years, consist of 97 respondents (30.9%) and

followed by the respondents have been working for 1 to 5 years with 93 respondents

(29.6%). The respondents have been working for more than 10 years comprised of 84

respondents (26.8%) while the respondents have working experience less than 1 year

is the smallest group in this study with only 40 respondents 12.7%.

4.3 Reliability Analysis

Table 4.8: Reliability Analysis Results for Dependent Variable and Independent

Variables

Reliability Statistics

Variables Construct N of

Items

Cronbach's

Alpha

Dependent Variable Employee Retention 6 0.895

Independent

Variables

Compensation 5 0.888

Leadership 5 0.883

Training and Development 6 0.897

Working Environment 6 0.891

Work-Life Balance 5 0.886

Job Satisfaction 7 0.898


Reliability analysis allows the researcher to create a predictable and consistent result

in the study. The reliability of the questions of the questionnaire is generally indicated

by the Cronbach’s alpha measurement. The items in the scale will show a better

internal consistency when coefficient of Cronbach’s alpha is near toward 1 (George &

Mallery, 2003). Generally the researcher will consider the minimum Cronbach’s

alpha coefficient is 0.7. However, the lower coefficients can be still considered based

on objective of the study (Hair, Bush, & Ortinau, 2003)

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As the reliability analysis results displayed in the Table 4.8, all variables include

dependent variable as well as independent variables had obtained the Cronbach’s

alpha values more than 0.8. As the dependent variable in this study, employee

retention has 6 items in the construct, and achieved the alpha value with 0.895. For

the independent variables, compensation, leadership and work-life balance have 5

items in the constructs, and obtained the alpha values with 0.888, 0.883 and 0.886

respectively. Training and development, and working environment have 6 items in

the constructs, and the alpha values are 0.897 and 0.891. Job satisfaction has 7 items

in the construct and achieved 0.898 for the alpha value. As mentioned by Zikmund et

al (2010), the coefficient of Cronbach’s alpha obtains 0.8 to no more than 0.9 can be

considered as very good reliability. Hence, the items within all the variables possess a

high reliability for this study.

4.4 Inferential Analysis

The information and data gathered from respondents by the researcher will be

analysed and interpreted by inferential analysis. Pearson’s correlation analysis and

multiple regression analysis are conducted to analyse and interpret the data and the

relationship between the dependent variable and independent variables in this study.

In this study, 95% confidence level (p<0.05) was used to determine the significance

level of results. The analysed results will be shown and interpreted as following.

4.4.1 Pearson’s Correlation Coefficient Analysis

Correlation matrix is checking the relationship between the variables in this study.

Correlation analysis allows the researcher to analyse and interpret the relationship

between the variables. Correlation coefficient, r measures the linear association

(strength and direction) among variables especially independent variables with the

dependent variables.

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Table 4.9: Pearson’s Correlation Analysis Results


Correlationsb

Compe

nsation

Leaders

hip

Trainin

g and

Develo

pment

Worki

ng

Envir

onme

nt

Work-

Life

Balance

Job

Satisfac

tion

Employ

ee

Retenti

on

Compen

sation

Pearson

Correlation 1

Sig. (2-

tailed)

Leaders

hip

Pearson

Correlation 0.947

** 1

Sig. (2-

tailed) 0.000

Trainin

g and

Develop

ment

Pearson

Correlation 0.689

** 0.721

** 1

Sig. (2-

tailed) 0.000 0.000

Workin

g

Environ

ment

Pearson

Correlation 0.890**

0.905**

0.690**

1

Sig. (2-

tailed) 0.000 0.000 0.000

Work-

Life

Balance

Pearson

Correlation 0.741

** 0.733

** 0.874

** 0.691

** 1

Sig. (2-

tailed) 0.000 0.000 0.000 0.000

Job

Satisfac

tion

Pearson

Correlation 0.722**

0.736**

0.886**

0.714**

0.902**

1

Sig. (2-

tailed) 0.000 0.000 0.000 0.000 0.000

Employ

ee

Retentio

n

Pearson

Correlation 0.852

** 0.860

** 0.823

** 0.830

** 0.844

** 0.848

** 1

Sig. (2-

tailed) 0.000 0.000 0.000 0.000 0.000 0.000

**. Correlation is significant at the 0.01 level (2-tailed).

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The results of Pearson’s correlation analysis presented in Table 4.9 shown

correlations of employee retention with all independent variables (compensation,


job satisfaction) are statistically significant with p-value less than 0.05. The

correlation coefficients, r between the employee retention with all the independent

variables are above 0.8.

Based on the standard measurement of Pearson correlation illustrated in Table 3.4

(Hinkle et al., 2003), all independent variables have a high positive correlation with

the employee retention. The r between employee retention and the leadership is the

highest r within all independent variables, which is 0.860, followed by compensation

and job satisfaction with 0.852 and 0.848 respectively. Work-life balance obtained

0.844, while working environment achieved 0.830. Training and development is the

lowest among the independent variables, which is 0.823 for the correlation coefficient

with employee retention.

In addition, most of the correlation coefficients between the independent variables

had obtained more than 0.7, the findings indicated as high positive correlation.

However, working environment with work-life balance (r=0.691), training and

development with working environment (0.690), and compensation with training and

development (r=0.689) had showed a moderate positive correlation relationship

compared to others. Nonetheless, the Table 4.9 found that the compensation with

leadership (r=0.947), leadership with working environment (r=0.905), and work-life

balance with job satisfaction (r=0.902) had showed a very high positive correlation

relationship.

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4.4.2 Multiple Regression Analysis

Table 4.10: Model Summary of Multiple Regression Analysis


Based on the analysed result in Table 4.10, the multiple correlation coefficient (R)

shown on the Model Summary table is using all the predictors at the same time and

the value is 0.928. The adjusted R2 obtained the result is 0.859, it means 85.9% of

variance in the employee retention can be predicted from six different factors, which

are compensation, leadership, training and development, working environment, work-

life balance and job satisfaction. Nonetheless, the 14.1% variance of employee

retention can be explained by other factors. The Durbin-Watson value is 1.523.

Based on the rule of thumb, the value in the range of 1.5 to 2.5 is considered as no

autocorrelation. The value less than 1 or more than 3 could be cause for concern

(Field, 2009).

Model Summaryb

Model R R

Square Adjusted R Square

Std. Error of the

Estimate

Change Statistics

Durbin-Watson

R Square Change

F Change df1 df2

Sig. F Change

1 0.928a 0.862 0.859 0.38373 0.862 319.255 6 307 0.000 1.523

a. Predictors: (Constant), Job Satisfaction, Working Environment, Training and Development, Compensation, Work-life Balance, Leadership b. Dependent Variable: Employee Retention

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Table 4.11: ANOVA Test of Multiple Regression Analysis

ANOVAa

Model

Sum of

Squares df

Mean

Square F Sig.

1 Regression 282.055 6 47.009 319.255 0.000b

Residual 45.205 307 0.147

Total 327.260 313

a. Dependent Variable: Employee Retention

b. Predictors: (Constant), Job Satisfaction, Working Environment, Training and

Development, Compensation, Work-life Balance, Leadership


The Table 4.11 shows the F-value is 319.255, and the p-value is 0.000 (p<0.05). This

result shows all different factors (compensation, leadership, training and development,

working environment, work-life balance and job satisfaction) in this study possess

significant relationship with dependent variable. It shows that this model is

appropriate and reliable to examine the relationship among independent and

dependent variable.

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Table 4.12: Coefficient Table of Multiple Regression Analysis


According to the result shown in Table 4.13, the model’s equation is formed as the

following:

Employee retention = -0.138 + 0.177x1 + 0.193x2 + 0.134x3 + 0.150x4 + 0.176x5 +

0.212x6

x1 = Compensation

x2 = Leadership

x3 = Training and Development

x4 = Working Environment

x5 = Work-life Balance

x6 = Job Satisfaction

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B

Std.

Error Beta

1 (Constant) -0.138 0.081 -1.707 0.089

Compensation 0.177 0.072 0.175 2.451 0.015

Leadership 0.193 0.076 0.191 2.528 0.012

Training and Development 0.134 0.052 0.131 2.575 0.011

Working Environment 0.150 0.055 0.143 2.725 0.007

Work-life Balance 0.176 0.056 0.177 3.155 0.002

Job Satisfaction 0.212 0.059 0.204 3.590 0.000

a. Dependent Variable: Employee Retention

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The Table 4.13 shown the compensation and employee retention has a value of t-

statistic of 2.451 (t>1.96), and p=0.015 (p<0.05). Hence, the H1 is supported at 0.05

level, and do not reject H1. The result indicated that the compensation has positive

effect on the employee retention directly and significantly. The hypothesis H1

indicated that the each additional score of independent variable (compensation)

coefficient is increased, on average, the score of employee retention will increase by

0.177.


According to the result shown in the Table 4.13, the leadership and employee

retention has obtained the t-statistic value of 2.528 (t>1.96) and p=0.012 (p<0.05).

The result indicated the leadership possesses a direct positive effect on the employee

retention. Hence, H2 is significant and supported at 0.05 level, and do not reject H2.

The hypothesis H2 indicated that the independent variable (leadership) coefficient

increase each additional score on leadership, on average, the score of employee

retention will increase by 0.193.


Table 4.13 shows the relationship among training and development and employee

retention has value of t-statistic of 2.575 (t>1.96) and p=0.011 (p<0.05). The result

means the training and development is direct positive effect on the retention of

workers in this study. Hence, H3 is significant and supported at 0.05 level, and do not

reject H3. The hypothesis H3 indicated that the independent variable (training and

development) coefficient increase each additional score training and development, on

average, the score of employee retention will increase by 0.134.

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Based on Table 4.13, the relationship of working environment and retention of

workers has a value of t-statistic of 2.725 (t>1.96), and p=0.007 (p<0.05). Hence, the

H4 is supported at 0.05 level, and do not reject H4. The result means the working

environment has positive effect on employee retention directly and significantly. The

hypothesis H4 indicated that the each additional score of independent variable

(working environment) coefficient is increased, on average, the score of employee

retention will increase by 0.150.


Table 4.13 displays the work-life balance and employee retention has value of t-

statistic of 3.155 (t>1.96) and p=0.002 (p<0.05). It indicated the work-life balance is

direct positive affect the employee retention for this study. Hence, H5 is significant

and supported at 0.05 level, and do not reject H5. The hypothesis H5 indicated that the

independent variable (work-life balance) coefficient increase each additional score

work-life balance, on average, the score of employee retention will increase by 0.176.


According to the result shown in the Table 4.13, job satisfaction and employee

retention has obtained t-statistic value of 3.590 (t>1.96) and p=0.000 (p<0.05). This

result indicated the job satisfaction has direct positive effect on the employee

retention. Hence, H6 is significant and supported at 0.05 level, and do not reject H6.

The hypothesis H6 indicated that the independent variable (job satisfaction)

coefficient increase each additional score on job satisfaction, on average, the score of

employee retention will increase by 0.212.

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Figure 4.7: Results of the Theoretical Framework


4.5 Conclusion

SPSS used to analyse the collected data of the respondents. The chapter indicated

findings of relationship and strength between the different independent variables with

the dependent variable. Subsequently, the results in Chapter 4 are determined for the

more discussion in the coming chapter. In addition, implications and limitations faced

during the study and recommendations will be discussed also in the coming chapter.

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CHAPTER 5

DISCUSSION AND CONCLUSION

5.0 Introduction

This chapter, researcher will discuss all details of the finding after all the data

collected by the researcher had completed the data analysis. The researcher will

interpret the findings of study. Subsequently, the implication and limitation of study,

and the recommendations for this study in future will also be discussed in this chapter.

Lastly, the study conclusion will conclude the relationship between factors

(compensation, leadership, training and development, working environment, work-

life balance and job satisfaction) and employee retention among the Generation Y

workers in food industry.

5.1 Summary of Statistical Analysis

5.1.1 Descriptive Analysis

The analysis of demographic profile indicated most of the respondents are male and

consist of 51% compare to female which is 49% of respondents. The majority of the

respondents are born from 1986 to 1990, which consist of 34.7% of the respondents.

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The respondents with married status possess of 51.3% and respondents with single

status are 48.7%. For level of education, majority of respondents have secondary

school level, which is 35.0% of the respondents. Majority of respondents worked as

operators, they consist of 40.4%. For the working experience, most respondents have

been worked for 5 to 10 years, which consist of 30.9% among the respondents.

5.1.2 Reliability Analysis

To examine the reliability of variables tested in this study, reliability analysis was

performed. All variables were tested by the Cronbach’s alpha for the reliability

analysis. All the variables in this study have attained the Cronbach’s alpha value

above 0.8. As dependent variable for this study, employee retention obtained the

Cronbach’s alpha value 0.895. Job satisfaction is the highest within independent

variables, which is 0.898 and followed by training and development which obtained

the alpha value is 0.897. Working environment achieved the alpha value 0.891, and

compensation obtained 0.888 for the reliability. Work-life balance and leadership

were obtained 0.886 and 0.883 respectively. According to Hair et al. (2003), the

variables obtained minimum 0.7 for Cronbach’s alpha value is acceptable. Hence, all

the variables tested are reliable in this study.

5.1.3 Inferential Analysis

5.1.3.1 Pearson’s Correlation Analysis

Relationship between compensation, leadership, training and development, working

environment, work-life balance and job satisfaction with retention of workers are

analysed by Pearson’s Correlation Analysis.

The results illustrated in Table 4.9, all independent variables obtained the values more

than 0.8 with the dependent variable. In addition, p-value for all independent

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variables with dependent variable obtained 0.000 (p<0.05). It shows that all the

factors have high positive correlation with employee retention significantly.

5.1.3.2 Multiple Regressions Analysis

The result shows in Table 4.10, the adjusted R2

is 0.859, it means about 85.9% of the

variance in employee retention can be predicted from the six factors being tested in

this study. However, 14.1% variance of employee retention is affected by other

factors. ANOVA test (Table 4.11) shows the F-value is 319.255 while p-value

ontained 0.000 (p<0.05), it indicates that all independent variables are predictor of the

dependent variable.

The results shown in Table 4.12, all factors are positively influence the employee

retention among the Generation Y workers in food industry. Job satisfaction was the

strongest predictor compared to other factors in influencing employee retention, with

the beta value of 0.212. Training and development was the weakest predictor in this

study with beta value of 0.134. Leadership and compensation achieved a beta value

0.193 and 0.177 respectively, while work-life balance is 0.176 and working

environment is 0.150.

The employee retention can be predicted by the regression equation below:

Employee retention = -0.138 + 0.177x1 + 0.193x2 + 0.134x3 + 0.150x4 + 0.176x5 +

0.212x6

x1 = Compensation

x2 = Leadership

x3 = Training and Development

x4 = Working Environment

x5 = Work-life Balance

x6 = Job Satisfaction

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5.2 Discussion on Major Findings

Table 5.1: Results of the Hypotheses Testing

Hypotheses Values Scored Decision

H1: Compensation has a positive direct

effect on employee retention.

β = 0.177

p-value = 0.015 < 0.05 Supported

H2: Leadership has a positive direct effect

on employee retention.

β = 0.193


H3: Training and development has a positive

direct effect on employee retention.

β = 0.134


H4: Working environment has a positive

direct effect on employee retention.

β = 0.150


H5: Work-life balance has a positive direct


β = 0.176


H6: Job satisfaction has a positive direct


β = 0.212



This study is carried out to examine the six different factors have a positive direct

effect on retention of Generation Y workers in food industry. In total six hypotheses

were proposed in this study, all hypotheses are supported. The results of the study

were summarised in Table 5.1.

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5.2.1 Relationship between Compensation and Employee Retention


Obtained results for compensation are β=0.177 and p-value=0.015 (p<0.05). The

results were shown that a positive significant relationship between compensation and

retention of workers is presented among the Generation Y in the food industry. Hence,

H1 was supported as the p-value shows lesser than 0.05.

The result of compensation in this study is aligned with the similar employee

retention studies in the past. The study by Hong, Lam, Kumar, Ramendran and

Kadiresan (2012) employee compensation has positive relationship with employee

retention significantly with p=0.00. Another similar study by Mabaso (2016) had

found that the compensation is significant related to the retention of talent with the

result r=0.652 and p<0.01.

A fair system of compensation can help the organisation to attract the talents and also

keep the important employees. The employees will have a sense of appreciation by

the organisation upon their contribution and performance if they paid well (Lai, 2011).

The compensation can treated as a motivator for the employee retention strategy to

keep the important employees in the organisation (Gardner, Dyne, & Pierce, 2004;

Sandhya & Kumar, 2011).

5.2.2 Relationship between Leadership and Employee Retention


According to the results obtained for leadership found the leadership has a positive

significant relationship with retention of workers among the Generation Y in food

industry. The results obtained shown β=0.193 and p-value=0.012 (p<0.05). Thus, H2

was supported as the p-value is lesser than 0.05.

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The finding of leadership has supported by the past studies. Few studies on hospital

nurses and healthcare sectors found that leadership was directly influence staff

retention (Kleinman, 2004; Taunton, Boyle, Woods, Hansen, & Bott, 1997; Weberg,

2010). The study by Ng’ethe, Namusonge and Iravo (2012) indicated that leadership

has inversely impact on turnover intention of academic staff.

Duffield, Roche, Blay and Stasa (2011) found that nurse leader shows an important

role in creating job satisfaction and good working environment, and then increase the

staff retention level. Hersey, Blanchard and Johnson (2000) stated that the difference

style of leadership must be used by the managers based on the situation and also

understand the expectation and needs of the different employees.

5.2.3 Relationship between Training and Development and Employee

Retention


The results for the training and development in this study are β=0.134 and p-

value=0.011 (p<0.05). It is known that training and development possesses positive

direct effect on the retention among Generation Y workers in food industry. As p-

value is lesser than 0.05, H3 was supported.

The study by Clark, Smith and Uota (2013) found that an organisation providing

training to their staff more than twice a year will increase retention period of

employee. Hong et al. (2012) found the training and development has significant and

positive relationship with retention of staffs with the p-value less than 0.05. The study

by Messmer (2000) highlighted that the training and career development acted as a

critical factor in the retention of employee.

An organisation trains its workers well with latest technologies can keep the

competitiveness of the organisation in the competitive world (Tomlinson, 2002).

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Providing the job-related training by the organisation can increase the capability of

the employee in problem solving (Acton & Golden, 2002). Through appropriated

training provided by organisation to the employee can enhance their confident and

update the information for current operation, and also the employees can work under

minimum supervision and contribute more to the organisation (Ahlfors, 2011).

5.2.4 Relationship between Working Environment and Employee Retention


The obtained results for working environment are β=0.150 and p-value=0.007

(p<0.05). The results were shown a positive significant relationship between the

working environment and retention of workers is available among the Generation Y

in the food industry. Hence, H4 was supported as p-value shows the value lesser than

0.05.

The finding on working environment obtained similar result as few past studies. The

study by Msengeti and Obwogi (2015) on the employee retention was found the work

place environment is positively affect the employee retention. In addition, a study by

Westerman and Yamamura (2007) indicated that work environment fit of goal

orientation and system is significant to younger generation (Generation X and Y) than

Baby Boomers in job satisfaction and employee retention. The job satisfaction and

retention of staffs and workers level will be enhanced under a positive working

environment (C. M. Duffield et al., 2011).

Earle (2003) commented that employees spend majority of time in the workplace,

hence a good environment is provided by an organisation will make the employees

enjoying, feel energised and a sense of appreciate from their employer, and influence

the retention intention. When the organisations are providing the appropriate privacy

level and controls of sound in the work place can enhance the level of commitment

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and motivation of employees, and also increase the satisfaction and retention (Wells

& Thelen, 2002)

5.2.5 Relationship between Work-Life Balance and Employee Retention


In accordance to the obtained results, work-life balance shown a positive direct

influence on the retention of workers among Generation Y in food industry, as the

β=0.176 and p-value=0.002 (p<0.05). Hence, H5 was supported as p-value obtained

the value lesser than 0.05.

Few past studies had supported the finding of work-life balance on employee

retention in this study. Hashim, Azman, Ghani and Sabri (2016) found the work-life

balance shown relationship with employee retention. Deery (2008) found that the

work-life balance is taking important role in the direct impact on the employee

decision on retain or leave the organisation.

The study of Huang, Lawler and Lei (2007) found that the quality of work-life acts as

an important predictor for the employee turnover intention as well as the commitment

outcomes. Ahmad and Omar (2010) found that the family-supportive work culture

has positive relationship with intention of turnover of employees.

5.2.6 Relationship between Job Satisfaction and Employee Retention


Based on results obtained in this study for job satisfaction, it found that the job

satisfaction has positive significant relationship with the retention of Generation Y

workers in food industry. The results obtained shown β=0.212 and p-value=0.000

(p<0.05). Thus, H3 was supported as p-value is obtained lesser than 0.05.

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The result supported by past related studies on the job satisfaction and employee

retention. The study by Kwenin, Muathe and Nzulwa (2013) found the job

satisfaction is positively related to the employee retention. Memon, Panhwar and

Rohra (2010) found that the when the employees are pleased to the job, they are more

likely to stay in the organisation. The satisfaction acts as an critical predictor for the

intention of turnover in the study by Lee-Kelley, Blackman and Hurst (2009).

The study by the Tnay, Othman, Siong and Lim (2013) stated that the factors on

satisfaction of job have an negative relationship with the intention of leaving of

employees significantly. Job satisfaction acts a degree of the employees have the

positive emotion for their roles of work. Job satisfaction is crucial to the employee

well-being and the effectiveness of the organisation (Collins, 2007).

5.3 Implications on the Study

The findings of the study have provided the understanding into the frame of mind for

the Generation Y workers in the food industry. The results of the study have indicated

that the factors such as compensation, leadership, training and development, working

environment, work-life balance and job satisfaction have the significant impact on the

employee retention among the Generation Y workers in food industry. A guideline

has provided by the findings of the study to the organisation’s policies, compensation

system and the management style to retain the talents in the organisation, and stay the

competitiveness in industry.

The findings of the study also provided some insight to the food companies or

organisations as how the factors being studied in this study affect retention of the

Generation Y workers in food companies, thus the companies can develop a better

planning to attract, promote and retain key employees in companies to fulfil the

current and future needs in the industry. The companies or the organisations can

emphasize on improve the factors that they are lacking or relatively weak in the

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companies’ policy in order to keep the important employee for a longer period with

the companies.

A comprehensive company’s or organisation’s policy and planning should be

implemented in order to fulfil the needs of the employees, and also take a good care

of the feelings of the employee. The findings of the study are not only provided a

guideline for the Generation Y and food industry, they also can be the references for

other industries to retain the skilful and important workers in the organisations.

Understanding the factors influence on the employee retention will be a competitive

advantage to the company or organisation.

5.4 Limitation of the Study

Few limitations were found throughout the conduct of this study. The first limitation

met by the researcher is the time constraint. The objectives of this study have been

achieved. However the accuracy and quality of the study can be enhanced if the study

can take longer time to collect the data. A valid and representative data and results

can be collected when the sample size is larger.

The second limitation of this study is the findings are based on samples collected only

from an economic corridor in Malaysia, which is Iskandar Malaysia in Southern

Johor. Thus, it becomes a limitation for this study due to the Generation Y workers in

Iskandar Malaysia might not be able to represent the entire Generation Y population

due to the pressure of society, thinking, needs, beliefs and other factors toward the

staying in the organisation are different. Hence different areas might affect the

thoughts of Generation Y workers continue staying in food industry.

Food industry is a broad as well as complex collective of businesses to supply the

food to the population. It includes the agriculture for raw material supply,

procurement, manufacturing and processing, marketing, distribution, customer

services and etc. Due to the time constraint, the sample collection did not take the

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consideration of the differences between the components of food industry. The

Generation Y workers in in each component have different function of job and needs

for retain in the organisation, Hence it will affect the factors on employee retention.

These finding of study might not be representative enough for the whole Generation

Y workers in food industry in Malaysia.

In addition, this study had also collect the demographic profile which are year of born,

gender, marital status, education levels, years of working experience, and job

positions. However, the demographic profiles of the respondents were not taken into

the consideration that different background of the workers might have different

expectations and needs toward the company or organisation. The demographic profile

might has the impact on the thinking, needs, knowledge and others then affect the

result of employee retention.

5.5 Recommendation

The researcher had proposed some suggestions to overcome the limitation that

available in this study. Overcome the limitations allows the better research can be

conducted in the future. Suitable solutions and improvements are needed to be

undertaken to solve the limitations.

First, a longer period of time should be spent to conduct this study and collecting the

data. Spending more time allows the researcher to collect larger amount of samples.

Enhance the sample size become larger can make the findings become more accurate

and reliable. Although collecting larger sample size will spend more time and fund, it

will offer a better results for the study, and make the results can be more

representative of the whole population.

Second, the study of the factors affecting the employee retention among the

Generation Y workers in food industry can be conducted in other economic corridors

in Malaysia due to the difference regions might present different pressure of society,

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thinking, needs, beliefs and other factors that will affect the intention of staying in the

organisation. The findings of the future research can be compared with this study to

examine whether those factors that affecting employee retention is similar or involves

the other different factors. Different sampling frame and research framework also can

provide a guideline for the organisations to develop a better strategy to retain the

important employees.

Third, the different components in the food industry have different job functions, and

causes the factors affecting the employee retention of the Generation Y workers are

different. Hence the researcher is suggested that the study regarding to each

component in food industry can be conducted to obtain more insight of the factors to

retain the Generation Y workers in Malaysia, and also make the collected data more

representative to the Generation Y population in Malaysia.

Lastly, the future study of the employee retention of Generation Y workers in food

industry can take consideration of the demographic profile such as are year of born,

gender, marital status, education levels, years of working experience, and job

positions to develop the research framework. The respondents with different

demographic profile will have the different point of views, needs, expectation,

experience and thinking towards the intention of retention in the organisation. Thus

analysing the demographic profile will increase the reliability and quality of the

findings of the study. The results can be more representative to the whole Generation

Y population who worked in food industry in Malaysia.

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5.6 Conclusion

This study examined relationship among the factors which are compensation,


job satisfaction with the employee retention among Generation Y workers in food

industry in Malaysia.

This study was found that all independent variables being studied have positive direct

effect on employee retention. Among the independent variables, job satisfaction,

leadership and compensation are the highest effect on employee retention among

Generation Y workers in food industry. These findings showed that the companies in

food industry can concentrate on these three factors to enhance the retention rate of

the employees.

The studies of the employee retention among the Generation Y in Malaysia are

limited, and the studies about the employee retention in food industry are limited too.

Hence it leads to limited studies to refer for this study. In addition, few limitations are

also being faced by the researcher. The future study of the employee retention among

the Generation Y could be done with other retention factors to discover more

information among the Generation Y workers.

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APPENDICES

Appendix A: Survey Questionnaire Form

UNIVERSITI TUNKU ABDUL RAHMAN

Research Topic: Factors Affecting the Retention of Generation Y Workers in

Food Industry

Dear Participant,

I'm a postgraduate student from Universiti Tunku Abdul Rahman (UTAR), Faculty of

Accountancy and Management (FAM) majoring in Master of Business

Administration. I'm studying a research project on “Factors Affecting The Retention

of Generation Y Workers In Food Industry”. The objective of this survey is to

understand relationship between the six factors and employee retention in the food

industry among the Generation Y.

This questionnaire will take approximately 8-10 minutes to complete. Please be

informed that all information collected from this survey is solely for final year report

writing. Under the Personal Data Protection Act (PDPA) 2010, it is assured that all

information collected will be kept confidential and no publications will contain

information from which you may be identified.

If you do not wish to participate, simply discard the questionnaires. Completing and

returning the questionnaire constitutes your consent to participate. Keep this letter for

your records. If you have any questions regarding the research, contact KOH YAN

HORNG at +60167208148 or DR. KOMATHI A/P MUNUSAMY, supervisor at

Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman (UTAR)

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Lot Pt 21144, Jalan Sungai Long, Bandar Sungai Long, Cheras 43000 Kajang,

Selangor. If you have any questions regarding your right as a research participant,

please contact the institutional review board office at UTAR.

Thank you for taking the time to assist me in my educational endeavours.

Yours sincerely,

Koh Yan Horng

Part A: Demographic Information

Please complete the following details and place (√) in the appropriate answer.

1. Gender:

□ Male □ Female

2. Born Year:

□ 1980 to 1985

□ 1986 to 1990

□ 1991 to 1995

□ 1996 to 2000

3. Marital Status:

□ Single □ Married

4. Education level:

□ Primary School

□ Secondary School

□ STPM/UEC/Diploma

□ Bachelor’s Degree

□ Postgraduate

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5. Job Position:

□ Operator

□ Supervisor

□ Executive/Officer

□ Manager/Managerial role

6. Work Experience

□ Less than 1 year

□ 1 to 5 years

□ 5 to 10 years

□ More than 10 years

Part B: Factors that Affecting Employee Retention

The following set of statement is related factors that affecting employee retention. Using the

following scale, please circle only one answer that best reflects your opinion about the

statement.

Strongly Disagree (SD) – 1

Disagree (D) – 2

Neither Agree nor Disagree (N) – 3 Agree (A) – 4

Strongly Agree (SA) – 5

B1 Compensation SD D N A SA

CP1 I feel I am being paid a fair amount for

the work I do.

1 2 3 4 5

CP2 I feel satisfied with my chances for salary increases.

1 2 3 4 5

CP3 I feel satisfied with the benefits I

receive.

1 2 3 4 5

CP4 The benefits I receive are as good as

most other organizations offer.

1 2 3 4 5

CP5 The benefit package I have is equitable.

1 2 3 4 5

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B2 Leadership SD D N A SA

L1 My leader understands my job and

needs.

1 2 3 4 5

L2 My leader recognizes my potential.

1 2 3 4 5

L3 Regardless of how much authority I

built into my position, my leader

would use his or her power to help me

solve my work problems.

1 2 3 4 5

L4 I have enough confidence in my leader

that I would defend and justify his or

her decision if he or she were not

present to do so.

1 2 3 4 5

L5 My working relationship with my

leader is effective.

1 2 3 4 5

B3 Training and Development SD D N A SA

TD1 The company does a good job of

providing the training/skill building I

needed to improve my job

performance.

1 2 3 4 5

TD2 The company does a good job of

providing opportunities for

development and growth for all

employees.

1 2 3 4 5

TD3 I am given the training and support I

need to do my job effectively.

1 2 3 4 5

TD4 I am given a real opportunity to

improve my skills in this company.

1 2 3 4 5

TD5 I am provided with adequate

opportunities for career growth.

1 2 3 4 5

TD6 I have the opportunity to learn skills

that will improve my chances for

promotion.

1 2 3 4 5

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B4 Working Environment SD D N A SA

WE1 The company I work for provides

basic benefits (e.g., health care,

transportation assistance, food aid,

etc.).

1 2 3 4 5

WE2 The company I work for has programs

or processes that help employees cope

with incidents and prevent workplace

accidents.

1 2 3 4 5

WE3 The company I work for is concerned

with the safety of their employees by

having access control of people who

enter the company building/facilities.

1 2 3 4 5

WE4 The company I work for provides

additional benefits (e.g., membership

in gyms, country clubs, and other

establishments, etc.).

1 2 3 4 5

WE5 The facilities and physical condition

(lighting, ventilation, noise and

temperature) of the company I work

for are ergonomic, comfortable, and

appropriate.

1 2 3 4 5

WE6 The company I work for is concerned

with my health and quality of life.

1 2 3 4 5

B5 Work-Life Balance SD D N A SA

WLB1 The company allows me to take

time off for personal issues.

1 2 3 4 5

WLB2 Job sharing between two or more

people on a full time job in my

company.

1 2 3 4 5

WLB3 The company allows using

telecommuting to work from home

or outside of my central workplace.

1 2 3 4 5

WLB4 Referral services are provided by the

company for my personal matter.

1 2 3 4 5

WLB5 The company treats all employees

in the same way when using “work-

life balance” policies.

1 2 3 4 5

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B6 Job Satisfaction SD D N A SA

JS1 I feel sense of pride in doing my job.

1 2 3 4 5

JS2 My job is enjoyable.

1 2 3 4 5

JS3 I am satisfied with my choice of

employer.

1 2 3 4 5

JS4 I am satisfied with my choice of

profession.

1 2 3 4 5

JS5 I look forward to going to work.

1 2 3 4 5

JS6 Current job meets my pre-employment

expectations.

1 2 3 4 5

JS7 I feel my job is meaningful.

1 2 3 4 5

Part C: Employee Retention

Please circle only one answer that best reflects your opinion on employee retention in your

company.

Strongly Disagree (SD) – 1 Disagree (D) – 2

Neither Agree nor Disagree (N) – 3

Agree (A) – 4 Strongly Agree (SA) – 5

C1 Employee Retention SD D N A SA

ER1 I do not plan to actively look for a job

with a new employer within the next

year.

1 2 3 4 5

ER2 I seldom think about quitting my job.

1 2 3 4 5

ER3 I will not voluntarily leave this

company within the next three years.

1 2 3 4 5

ER4 I see a future for myself within this

company.

1 2 3 4 5

ER5 The work within this company gives

me satisfaction.

1 2 3 4 5

ER6 I love working for this company.

1 2 3 4 5

Thank you again for your participation.

Your time and opinions are greatly appreciated!

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Appendix B: Frequency Results on Respondents’ Demographical Information

Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid Male 160 51.0 51.0 51.0

Female 154 49.0 49.0 100.0

Total 314 100.0 100.0

Born Year


Cumulative

Percent

Valid 1980 to 1985 63 20.1 20.1 20.1

1986 to 1990 109 34.7 34.7 54.8

1991 to 1995 91 29.0 29.0 83.8

1996 to 2000 51 16.2 16.2 100.0

Total 314 100.0 100.0

Marital Status


Cumulative

Percent

Valid Single 153 48.7 48.7 48.7

Married 161 51.3 51.3 100.0

Total 314 100.0 100.0

Education Level


Cumulative

Percent

Valid Primary School 17 5.4 5.4 5.4

Secondary School 110 35.0 35.0 40.4

STPM/UEC/Diploma 71 22.6 22.6 63.1

Bachelor's Degree 92 29.3 29.3 92.4

Postgraduate 24 7.6 7.6 100.0

Total 314 100.0 100.0

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Job Position


Cumulative

Percent

Valid Operator 127 40.4 40.4 40.4

Supervisor 73 23.2 23.2 63.7

Executive/Officer 72 22.9 22.9 86.6

Manager/Managerial Role 42 13.4 13.4 100.0

Total 314 100.0 100.0

Work Experience


Cumulative

Percent

Valid less than 1 year 40 12.7 12.7 12.7

1 to 5 years 93 29.6 29.6 42.4

5 to 10 years 97 30.9 30.9 73.2

more than 10 years 84 26.8 26.8 100.0

Total 314 100.0 100.0

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Appendix C: Cronbach’s Alpha Using Reliability Test

Compensation


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.888 .889 5

Item-Total Statistics

Scale Mean

if Item

Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if Item

Deleted

I feel I am being paid a fair

amount for the work I do 12.6274 16.810 .799 .658 .848

I feel satisfied with my

chances for salary increases 12.8758 16.403 .734 .548 .862

I feel satisfied with the

benefits I receive 12.9172 17.488 .653 .426 .880

The benefits I receive are as

good as most other

organizations offer

12.8854 17.060 .691 .500 .872

The benefit package I have

is equitable 12.7580 16.376 .769 .623 .854

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Leadership


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.883 .885 5


Scale Mean

if Item

Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if Item

Deleted

My leader understands my

job and needs 12.7006 17.239 .766 .587 .849

My leader recognizes my

potential 12.8376 16.654 .727 .534 .857

Regardless of how much

authority I built into my

position, my leader would

use his or her power to help

me solve my work problems

12.8344 17.174 .682 .472 .867

I have enough confidence in

my leader that I would

defend and justify his or her

decision if he or she were

not present to do so

12.8439 16.829 .696 .491 .864

My working relationship with

my leader is effective 12.7707 16.497 .735 .547 .855

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Training and Development


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.897 .897 6


Scale Mean

if Item

Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if Item

Deleted

The company does a good

job of providing the

training/skill building I

needed to improve my job

performance

16.0064 25.010 .752 .576 .874

The company does a good

job of providing opportunities

for development and growth

for all employees

16.0318 25.795 .671 .462 .886

I am given the training and

support I need to do my job

effectively

16.0541 24.946 .715 .515 .880

I am given a real opportunity

to improve my skills in this

company

16.0796 25.869 .693 .499 .883

I am provided with adequate

opportunities for career

growth

16.0860 25.050 .739 .560 .876

I have the opportunity to

learn skills that will improve

my chances for promotion

16.1115 25.128 .759 .585 .873

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Working Environment


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.891 .892 6


Scale Mean if

Item Deleted

Scale

Variance if

Item

Deleted

Corrected

Item-Total

Correlatio

n

Squared

Multiple

Correlation

Cronbach's

Alpha if

Item

Deleted

The company I work for provides basic

benefits (e.g., health care, transportation

assistance, food aid, etc.).

16.1083 23.924 .769 .598 .863

The company I work for has programs or

processes that help employees cope with

incidents and prevent workplace accidents

16.1051 23.737 .698 .520 .874

The company I work for is concerned with

the safety of their employees by having

access control of people who enter the

company building/facilities

16.1624 24.469 .687 .473 .875

The company I work for provides additional

benefits (e.g., membership in gyms, country

clubs, and other establishments, etc.).

16.2484 23.344 .672 .480 .879

The facilities and physical condition

(lighting, ventilation, noise and temperature)

of the company I work for are ergonomic,

comfortable, and appropriate

16.0860 23.951 .721 .537 .870

The company I work for is concerned with

my health and quality of life 16.1529 24.405 .720 .532 .870

of 116

Work-life Balance


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.886 .887 5


Scale Mean

if Item

Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if Item

Deleted

The company allows me to

take time off for personal

issues

12.6879 17.896 .763 .584 .854

Job sharing between two or

more people on a full time

job in my company

12.8280 17.127 .737 .548 .858

The company allows using

telecommuting to work from

home or outside of my

central workplace

12.7229 16.904 .732 .542 .860

Referral services are

provided by the company for

my personal matter

12.7484 16.962 .720 .523 .863

The company treats all

employees in the same way

when using “work-life

balance” policies

12.7070 18.093 .679 .465 .872

of 116

Job Satisfaction


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.898 .899 7


Scale Mean

if Item

Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if Item

Deleted

I feel sense of pride in doing

my job 18.8917 34.832 .775 .611 .875

My job is enjoyable 18.9841 35.901 .680 .492 .886

I am satisfied with my choice

of employer 19.0701 35.273 .679 .473 .886

I am satisfied with my choice

of profession 18.9713 35.958 .637 .439 .891

I look forward to going to

work 18.9873 35.444 .683 .504 .885

Current job meets my pre-

employment expectations 19.0000 35.374 .718 .547 .881

I feel my job is meaningful 19.0701 35.203 .751 .584 .878

of 116

Employee Retention


Cronbach's

Alpha

Cronbach's

Alpha Based on

Standardized

Items N of Items

.895 .896 6


Scale Mean

if Item

Deleted

Scale

Variance if

Item Deleted

Corrected

Item-Total

Correlation

Squared

Multiple

Correlation

Cronbach's

Alpha if Item

Deleted

I do not plan to actively

look for a job with a new

employer within the next

year

15.9236 26.972 .769 .611 .870

I seldom think about

quitting my job 15.9968 25.613 .733 .569 .875

I will not voluntarily leave

this company within the

next three years

15.9618 26.995 .703 .509 .879

I see a future for myself

within this company 15.9490 27.058 .679 .500 .883

The work within this

company gives me

satisfaction

16.0605 26.964 .697 .514 .880

I love working for this

company 15.9841 26.514 .735 .563 .874

of 116

Appendix D: Pearson Correlation Coefficient Test

Correlationsb

compensation leadership training environment worklife satisfaction retention

compensation Pearson Correlation 1 .947** .689

** .890

** .741

** .722

** .852

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

leadership Pearson Correlation .947** 1 .721

** .905

** .733

** .736

** .860

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

training Pearson Correlation .689** .721

** 1 .690

** .874

** .886

** .823

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

environment Pearson Correlation .890** .905

** .690

** 1 .691

** .714

** .830

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

worklife Pearson Correlation .741** .733

** .874

** .691

** 1 .902

** .844

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

satisfaction Pearson Correlation .722** .736

** .886

** .714

** .902

** 1 .848

**

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

retention Pearson Correlation .852** .860

** .823

** .830

** .844

** .848

** 1

Sig. (2-tailed) .000 .000 .000 .000 .000 .000

**. Correlation is significant at the 0.01 level (2-tailed).

b. Listwise N=314

of 116

Appendix E: Multiple Regression Test

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.

Correlations Collinearity Statistics

B Std. Error Beta Zero-order Partial Part Tolerance VIF

1 (Constant) -.138 .081 -1.707 .089

compensation .177 .072 .175 2.451 .015 .852 .139 .052 .088 11.390

leadership .193 .076 .191 2.528 .012 .860 .143 .054 .079 12.676

training .134 .052 .131 2.575 .011 .823 .145 .055 .174 5.735

environment .150 .055 .143 2.725 .007 .830 .154 .058 .164 6.085

worklife .176 .056 .177 3.155 .002 .844 .177 .067 .143 6.976

satisfaction .212 .059 .204 3.590 .000 .848 .201 .076 .139 7.182

a. Dependent Variable: retention

factors affecting the retention of generation y...

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